Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  Equities  >  NATIONAL STOCK EXCHANGE OF INDIA  >  Wipro    WIPRO   INE075A01022

WIPRO (WIPRO)
Mes dernières consult.
Most popular
  Report  
SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsofficial PublicationsSector newsTweets
OFFRE ETE Zonebourse : Jusqu'à 6 mois offerts sur tous les portefeuilles

Wipro Share Auction Gets Weak Response, Raises About $150 Million

share with twitter share with LinkedIn share with facebook
share via e-mail
0
03/14/2012 | 05:44pm CEST

-- Wipro's founder trust raises around INR7.50 billion by selling 17.8 million shares

-- Wipro's founder trust had planned to sell 35 million shares

-- Floor price for share sale was set at INR418.00 a share

(Rewrites introduction, adds Azim Premji Trust comments in first, third and seventh paragraphs.)

 
   By Khushita Vasant and Romit Guha 
   Of  
 

The Azim Premji Trust, controlled by chairman of Wipro Ltd. (507685.BY), said Wednesday it has raised about INR7.50 billion ($150 million) for charity through an auction of the software exporter's shares, though a weak response saw just over half the shares on offer being covered.

The trust had targeted to raise at least $293 million by auctioning 35 million shares, or a 1.4% stake in India's third-largest locally listed software exporter by sales, at a minimum of INR418 each.

"The sale of 17.8 million shares generated around INR7.50 billion of cash for the APT (Azim Premji Trust) at prices around today's [Wednesday] daily trading range," the trust said in a statement. As per calculations, the shares were sold at about INR421.3 apiece. The Wipro stock fell 1.4% to close at INR425.40, compared with a 0.6% gain in the Bombay Stock Exchange's benchmark index.

The trust of Azim Premji, Wipro's billionaire chairman, was planning to use the proceeds to fund educational projects.

The sale was the second through an auction--the first was the government's March 1 sale of Oil & Natural Gas Corp. (500312.BY) shares--since India allowed this route for founders to sell stakes by avoiding complicated regulatory procedures.

The ONGC auction that got a tepid response--it barely succeeded after a state-run insurer stepped into buy most of the shares--and the indications from the Wipro offer so far may damp the plans of other companies that want to sell shares, especially through auctions.

The trust indicated that investors had to overcome challenges posed by the "unfamiliarity" of the new offer-for-sale process, or the auction, process.

"The undersubscription, if we go by the given data, is understandable," said Prakash Diwan, head of institutional clients group at Asit C. Mehta Investment Interrmediates. "Wipro is not a much sought-after stock in the current environment."

Wipro, in line with India's software industry, has been maintaining a cautious stance on its growth prospects, as its main markets of the U.S. and Europe face a tough economic environment.

To quicken its return to high growth that the company had been reporting before the global economic slowdown, it last year restructured the software and services division that accounts for three-fourths of Wipro's overall sales. But it has yet to post a significant turnaround.

The trust, along with the Azim Premji Foundation, held 9.1% of Wipro as of Dec. 31. The stake sale will also help the founder group to cut its stake in Wipro from 79.15% to comply with new rules that require at least 25% public shareholding in listed companies.

-By Khushita Vasant and Romit Guha, Dow Jones Newswires; 91 99675-86928; [email protected]

Stocks mentioned in the article
ChangeLast1st jan.
OIL AND NATURAL GAS CORPORATION LTD -0.94% 162.55 End-of-day quote.-15.41%
WIPRO -0.46% 260 End-of-day quote.-14.47%
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on WIPRO
06/18Information technology companies slam brakes on fresh investment
AQ
06/15WIPRO : Task force team busts five-member job fraud gang in Hyderabad
AQ
06/15WIPRO : Inks deal with nokia, latam cargo
AQ
06/14WIPRO : Intellectual Property Portfolio Recognized with National IP Award and WI..
PU
06/14WIPRO : Nokia Selects Wipro to Accelerate Its Supply Chain Digital Transformatio..
BU
06/14WIPRO : LATAM Cargo Awards a Cargo Management Contract to Wipro
BU
06/14Udacity looks to double down on enterprise game
AQ
06/12WIPRO : Positioned in the ‘Winner's Circle’ of HfS Blueprint Report ..
BU
06/12WIPRO : and Opera Solutions Launch Solution to Detect and Address Fraud and Wast..
BU
06/12Philips, IBM, Wipro & Infosys are investing in students to create skills-read..
AQ
More news
News from SeekingAlpha
06/14Wipro announces deal with Nokia; WIT -2.8% 
05/25SharedLabsFiles For $32 Million IPO 
04/26CLPS Proposes Terms For U.S. IPO 
04/25Wipro's (WIT) CEO Abidali Neemuchwala on Q4 2018 Results - Earnings Call Tran.. 
04/25Wipro Limited 2018 Q4 - Results - Earnings Call Slides 
Financials ( INR)
Sales 2019 570 B
EBIT 2019 91 959 M
Net income 2019 84 475 M
Finance 2019 211 B
Yield 2019 2,06%
P/E ratio 2019 14,06
P/E ratio 2020 12,87
EV / Sales 2019 1,74x
EV / Sales 2020 1,56x
Capitalization 1 202 B
Chart WIPRO
Duration : Period :
Wipro Technical Analysis Chart | WIPRO | INE075A01022 | 4-Traders
Technical analysis trends WIPRO
Short TermMid-TermLong Term
TrendsNeutralBearishBearish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus HOLD
Number of Analysts 42
Average target price 281  INR
Spread / Average Target 7,5%
EPS Revisions
Managers
NameTitle
Abidali Z. Neemuchwala Chief Executive Officer & Executive Director
Govil Saurabh Co-President & Chief Human Resources Officer
B. M. Bhanumurthy Co-President & Chief Operating Officer
Azim Hasham Premji Executive Chairman & Managing Director
Jatin Pravinchandra Dalal Chief Financial Officer & Senior Vice President
Sector and Competitors
1st jan.Capitalization (M$)
WIPRO-14.47%17 671
INTERNATIONAL BUSINESS MACHINES CORPORATION-5.83%132 628
ACCENTURE6.39%104 746
TATA CONSULTANCY SERVICES35.11%102 922
VMWARE, INC.20.69%61 553
AUTOMATIC DATA PROCESSING19.10%61 228