Wipro Falls Most in Four Years After Spinoff of UnitKartikay Mehrotra and Santanu Chakraborty
Wipro Ltd. fell the most in more than four years in Mumbai trading after India’s third-largest software-services provider traded for the first time as a standalone entity following a spinoff.
Shares fell 12 percent to 393.70 rupees at the close, the steepest drop since October 2008. The stock was the biggest loser on India’s S&P BSE Sensex, which declined 1.2 percent.
Billionaire chairman Azim Premji’s Wipro is trading today for the first time as a standalone information technology company after the separation of the consumer care, lighting and engineering businesses. Computer software and products accounted for about 86 percent of revenue in the year ended March 2012, according to data compiled by Bloomberg.
“The stock fall is accounting for the demerger,” said Sunil Pachisia, vice president at the Mumbai-based Pratibhuti Viniyog Ltd. “The scope for further decline is limited as the outgoing business had moderate revenues.”
The company announced the separation of its Wipro Consumer Care & Lighting, Wipro Infrastructure Engineering and Medical Diagnostic Product & Services businesses into a company called Wipro Enterprises Ltd. in November.