Wipro shares hit 8-month low, slip 4% in intra-day

Logo of Wipro
Shares of Wipro hit an over eight month low of Rs 274 per share, down 4%, extending its 3% decline on the BSE in past two sessions. The stock of information technology (IT) company was trading at its lowest level since July 20, 2017.

The trading volumes on the counter nearly doubled with a combined 1.82 million shares changing hands on the NSE and BSE till 10:33 am.

In past three months, Wipro has underperformed the market by falling 10% as compared to 4% decline in the S&P BSE Sensex. The S&P BSE IT index rallied 9% during the same period.

On March 14, 2018, Wipro, India's third largest IT services firm, had signed a definitive agreement to divest its hosted data centre business to Illinois-based hybrid IT services provider Ensono for $405 million (Rs 26.26 billion). The data centre business of the company consists of Wipro Data Centre and Cloud Services, Inc in the US and a portion of datacenter business in Germany and the UK.

Wipro will unlock value by transitioning eight data centers, and over 900 employees of its hosted data center services business to Ensono.

The acquisition is subject to customary closing conditions and regulatory approvals and is expected to close in the quarter ending June 2018. Ensono is a portfolio company of Charlesbank Capital Partners and M/C Partners, it added.