Wipro shares rise after IT major completes acquisition of 9.95% stake in FPEL Ujwal

Wipro shares jumped on Wednesday, a day after after the company completed the acquisition of 9.95 per cent in FPEL Ujwal, a company engaged in the business of developing, building and managing a portfolio of solar power assets. The stock of Wipro strengthened by as much as Rs 16.2, or four per cent, to Rs 423.8 apiece on BSE, rising for a second straight day and coming within Rs 20 of a 52-week high scaled last month.  

At noon, the stock of Wipro, the country’s fourth largest IT company by market value, traded well in the green with a gain of 3.4 per cent at Rs 421.5 apiece on the bourse.  The stock closed 3.29 per cent higher at Rs 421 apiece.

Wipro shares were the top gainer in the Sensex as well as Nifty baskets.  

On September 1, 2023, Wipro entered a definitive agreement to subscribe for the equity share capital in FPEL Ujwal. The objective of the acquisition, according to Wipro, was to enhance the proportion of the usage of renewable energy for its offices in Karnataka.  

The cost of acquisition was Rs 6.3 crore. 

Wipro is scheduled to announce its financial results for the second quarter of the current financial year on October 18.  

How Wipro fared in Q1  

Wipro reported a 6.7 per cent sequential decline in its consolidated net profit to Rs 2,870 crore for the quarter ended June 30, 2023. Its consolidated revenue decreased about 1.5 per cent on a quarter-on-quarter basis to Rs 22,831 crore for the June quarter, and consolidated margin shrank by 70 basis points to 15.1 per cent, according to a regulatory filing.  

According to Zee Business research, Wipro’s quarterly net profit for the June quarter was estimated at Rs 2,980 crore, revenue at Rs 22,930 crore and margin at 16 per cent.  

Wipro share price: Past performance 

In 2023 so far, Wipro shares have gained more than seven per cent, in line with an eight per cent increase in the headline Nifty index.  

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