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The announcement was made after market hours on Monday, 10 December 2012. Financial details of the deal were not disclosed.

Meanwhile, the BSE Sensex was up 114.17 points, or 0.59%, to 19,523.86.

On BSE, 5,226 shares were traded in the counter as against an average daily volume of 1.24 lakh shares in the past one quarter.

The stock hit a high of Rs 385.50 and a low of Rs 383.30 so far during the day. The stock had hit a 52-week high of Rs 452.50 on 17 February 2012. The stock had hit a 52-week low of Rs 325.60 on 30 July 2012.

 

The stock had underperformed the market over the past one month till 10 December 2012, rising 3.04% compared with the Sensex's 3.89% rise. The scrip had also underperformed the market in past one quarter, falling 1.52% as against Sensex's 9.25% rise.

The large-cap IT company has an equity capital of Rs 492.48 crore. Face value per share is Rs 2.

"Acquiring Sunflower Vanaspati underscores Cargill's long-term commitment to growing our consumer food business in India. It is an excellent fit with our existing strong brand portfolio through which we serve a significant consumer base across thee country," said Siraj Chaudhry, Chairman, Cargill India.

Anil Chugh, Senior Vice President, Wipro Consumer Care said "As part of our strategy we continuously assess the portfolio off the businesses we are in. We have identified our core market segments to be Personal Care, Skin Care, Wellness and Lighting and in line with our strategy we are divesting the Sunflower Vanaspati business. We are confident that Sunflower Vanaspati, which has a strong presence in Western India, will reach greater heights with Cargill, who are focused on Vegetable Oil & Vanaspati business."

He added "Sunflower Vanaspati business was about 1% of total Wipro Consumer Care and Lighting revenue. All employees related to this business will be absorbed in our current operations."

Shares of Wipro rose 0.61% to Rs 381.85 on Monday, 10 December 2012, after the company said it signed a definitive agreement to acquire 100% stake in Singapore-based FMCG company, L.D Waxsons Group, for an all cash consideration of about $144 million. The announcement was made on Saturday, 8 December 2012.

Revenues on run-rate basis for fiscal year ended March 2012 (FY'12) are about $68 million. This transaction will give Wipro, the leadership position in the facial skincare market in Malaysia and Singapore, expand its presence in China, besides enhancing its market position in other Asian markets.

L.D. Waxson Group, headquartered in Singapore, is a leading company with a wide portfolio of brands, including leading skin care brands Bio-essence and Ginvera, and health care brand Ebene. The company has manufacturing facilities in China and Malaysia and a strong footprint in Singapore, Malaysia , China, Taiwan, Hong Kong and Thailand. The transaction is expected to be closed within the next 60 days.

Wipro recently announced that its board at its meeting held on 1 November 2012, approved demerger of the Wipro Consumer Care & Lighting (including Furniture business), Wipro Infrastructure Engineering (Hydraulics & Water businesses), and Medical Diagnostic Product & Services business (through its strategic joint venture), into a separate company to be named Wipro Enterprises. Wipro will remain a publicly listed company that will focus exclusively on information technology. Wipro Enterprises will be an unlisted company.

Azim Premji will remain Executive Chairman of the Board of Wipro and will assume the position of Non-Executive Chairman of Wipro Enterprises.

Wipro Consumer Care and Lighting Group has a profitable presence in the branded retail market of toilet soaps, hair care soaps, baby care products and lighting products. Its brands include Santoor and Chandrika toilet soaps, Wipro Shikakai hair care soap, Santoor Talc, Wipro Baby Soft range of baby care products and Wipro Safewash liquid detergent. In the wellness segment, Wipro markets Glucovita Glucose powder and Sanjeevani Honey and Isabgol. In Lighting Wipro has a strong presence in commercial and institutional segment. In the domestic lighting segment Wipro has a complete range of bulbs, tube lights, compact florescent lamps and lighting accessories.

On a consolidated basis, Wipro's net profit rose 1.92% to Rs 1610.60 crore in Q2 September 2012 over Q1 June 2012. Total income from operations (net) was flat at Rs 10620.30 crore in the same period.

Wipro provides comprehensive IT solutions and services, including systems integration, Information Systems outsourcing, IT enabled services, package implementation, software application development and maintenance, and research and development services to corporations globally. Wipro has a strong presence in niche market segments of infrastructure engineering and consumer products & lighting.

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