Wipro Slips Over 1% After Its Subsidiary Approves The Terms Of US Dollar Denominated Notes

Shares of Wipro in early trade on June 18, 2021 fell over 1 percent to day's low price of Rs. 551.1. Meanwhile, benchmark indices after opening on a positive note shed early gains, with Nifty trading below 15,600 levels at the time of writing this copy.

Wipro Slips Over 1% After Its Subsidiary Approves The Terms Of US Dollar Denominated Notes

In an exchange filing, the IT major Wipro said "further to our letter dated June 10, 2021, we are pleased to inform you that the Board of Directors of Wipro IT Services LLC (the 'Issuer') being a company incorporated under the laws of Delaware and being a wholly owned step down subsidiary of Wipro Limited (the 'Company'), has approved the pricing, tenure and other terms of the U.S. dollar denominated notes (the 'Notes' and such issuance, the 'Issue').

Notably, the subsidiary unit of Wipro, Wipro IT Services, will be issuing the U.S. dollar denominated notes worth $750 million on June 23. As per the filing, the net proceeds of the sales of the Notes will be put towards refinancing or repaying existing debt, for general corporate purposes and/or for any other purpose. Tenure of the instrument will be 5 years and will carry a coupon rate of 1.5% per annum. The notes are rated A- by Standard & Poor's Rating Services and A- by Fitch Ratings Inc. and will be listed on the Singapore Exchange Securities Trading Limited (SGX-ST).

In another development, citing steep run up in the stock price of Wipro, Kotak Securities has downgraded the stock from the earlier 'Add' to a 'Reduce' rating. Owing to the sharp surge in stock price, Wipro currently trades at a premium to Infosys and at an only slight discount to TCS.

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