Wipro shares top gainer intraday, surge over 4.5% on multiple triggers - Know what brokerage says
The acquisition of Edgile, a cybersecurity services company, will strengthen Wipros play in the cybersecurity services space, the IT major said in an after-market filing on Monday.
On the back of multiple triggers, the information and technology heavyweight Wipro’s shares jumped over 4.5 per cent to touch day’s high of Rs 697 per share on the BSE intraday. The IT major on Monday made an acquisition announcement of US-based company Edgile for $230 million.
Besides, the IT company has also been inducted into BSE Sensex index, as per the BSE’s statement, and it would replace the two-wheeler major Bajaj Auto in the 30-share pack.
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The acquisition of Edgile, a cybersecurity services company, will strengthen Wipro's play in the cybersecurity services space, the IT major said in an after-market filing on Monday.
Edgile is recognized by security and risk leaders for its unique business-aligned cybersecurity capability, deep understanding of the changing regulatory environment and enabling cloud transformations that help secure the modern enterprise, Wipro said in its statement.
Moreover, the company's ‘strategy-first’ approach and ‘Quick Start’ solutions will allow the combined entity to deliver enhanced value in strategic cybersecurity services, Wipro further said.
According to the filing, the transaction is expected to be completed before March 31, 2022, subject to regulatory approvals and customary closing conditions.
While the global brokerage firm Morgan Stanley on Wipro’s acquisition announcements said, both the companies Wipro and Edgile plan to develop together Wipro CyberTransform, while maintaining equal-weight stance and target of Rs 700 per share.
The stock at around 03:09 pm is trading almost 4 per cent higher to Rs 692.5 per share on the BSE, as compared to over 1 per cent rise in the BSE Sensex at same time. The stock is also a top gainer on the Nifty50 intraday.
This is so far the third such acquisition of the IT heavyweight in 2021, as the company strengthening its cybersecurity business had acquired Ampion, an Australia-based cybersecurity services firm and Capco, a leading consultancy in the BFSI sector in Europe and the US in the same domain.
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