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Wipro share hits all-time high after firm inks $700-million deal with Germany's Metro AG

Share of Wipro touched an intraday high of Rs 387.35 rising 6.41% against previous close of Rs 364 on BSE

twitter-logoBusinessToday.In | December 23, 2020 | Updated 15:17 IST
Wipro share hits all-time high after firm inks $700-million deal with Germany's Metro AG
Wipro stock has gained 8% in the last 2 days. The IT stock opened with a gain of 2.79% at Rs 374.15.

Wipro share hit a fresh all-time high today after the firm inked a million-dollar deal with Germany's general store firm, Metro AG. Wipro signed a $700-million deal with the foreign firm that will see over 1,300 staff of the German wholesaler move to the Indian IT company. Share of Wipro touched an intraday high of Rs 387.35 rising 6.41% against previous close of Rs 364 on BSE.

Wipro stock has gained 8% in the last 2 days.  The IT stock opened with a gain of 2.79% at Rs 374.15.

Wipro share is trading higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages.

The share has gained 51.72% in one year and risen 56.43% since the beginning of this year. Market cap of the firm rose to Rs 2.20 lakh crore on BSE.

"The estimated deal value for the duration of the first five years is approximately $700 million. With the intention to extend up to four additional years, it can be a potential spend of up to $1 billion," Wipro said in a statement.

As a part of this transaction, Wipro will take over the IT units of Metro AG Metro-NOM GMBH in Germany and Metro Systems Romania S.R.L.

Wipro said it will deliver a complete technology, engineering, and solutions transformation programme for Metro as the latter positions itself as a Wholesale 360-degree provider in the hotel, restaurant and catering food industry.

 Meanwhile the IT firm said its up to Rs 9,500-crore share buyback programme will commence on December 29 and close on January 11, 2021.

In November, shareholders had approved Wipro's buyback plan for purchase of up to 23.75 crore equity shares at Rs 400 per share, aggregating to an amount of up to Rs 9,500 crore.

"...the company received final comments from the Securities and Exchange Board of India on December 21, 2020, with respect to the Draft Letter of Offer filed by the company for the captioned buyback...the company will dispatch the Letter of Offer to eligible shareholders," Wipro said in a regulatory filing.

The company has set December 11, 2020 as the record date for determining eligibility for the buyback.

The filing said the buyback will open on December 29, 2020 and close on January 11, 2021.

The last date for settlement of bids on the stock exchange would be on or before January 20, 2021.

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