Wipro Shares Surge Over 3% On Acquisition Of Brazilian IT Firm

Shares of IT company Wipro in intra-day trade on August 17, 2020 surged as much as 3.5% to day's high of Rs. 286.30 per share on the BSE. This is after the company announced that it has taken over Brazilian IT company IVIA Servios de lnformitica Ltd. Earlier, in July the company informed about signing an agreement for acquiring IVIA for a financial consideration of $22.4 million or nearly Rs 169 crore.

Wipro Shares Surge Over 3% On Acquisition Of Brazilian IT Firm

The counter is trading higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages. In the last one-year the stock of Wipro has jumped by 13% while in the year to date period it has seen stock price rise by 14.56%.

"In continuation to the aforesaid letter (dated July 14, 2020), this is to inform that the said acquisition has been completed on August 14, 2020," Wipro said. Further the company in July iterated that local talent base as well as long-standing associations of IVIA together with the company's own global know-how will enable expansion of its geographical reach in Brazil.

The acquisition will enable the IT company to establish delivery centres in the northeast Brazil.

IVIA is a Brazil-based company that provides IT solutions including system development, maintenance, consulting and project management services.

Wipro in Q1Fy21 posted a marginal increase in consolidated net profit to Rs. 2390.4 crore as against Rs 2,387.6 crore in the same quarter of last year. Income came in almost flat at Rs. 571.4 crore in the April-June quarter compared to Rs 15,566.6 crore in the same quarter of the last financial year.

At around 1:11 pm, the stock of Wipro quoted higher by 0.99% or Rs. 2.75 at Rs. 279.25 per share on the BSE.

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