Wipro rose 2.53% to Rs 551.45 at 10:03 IST on BSE after the company announced that it has entered into a strategic alliance with Alberta-based ATCO, one of Canada's premier corporations.
The company made the announcement before trading hours today, 18 July 2014.
Meanwhile, the BSE Sensex was down 45.04 points, or 0.18%, to 25,516.12.
On BSE, so far 85,000 shares were traded in the counter, compared with an average volume of 2.02 lakh shares in the past one quarter.
The stock hit a high of Rs 554.20 and a low of Rs 542 so far during the day. The stock hit a 52-week high of Rs 610.50 on 26 February 2014. The stock hit a 52-week low of Rs 368.70 on 26 July 2013.
The stock had outperformed the market over the past one month till 17 July 2014, rising 0.35% compared with 0.16% rise in the Sensex. The scrip had also underperformed the market in past one quarter, falling 8.15% as against Sensex's 12.96% rise.
The large-cap company has an equity capital of Rs 493.46 crore. Face value per share is Rs 2.
As part of this alliance, Wipro will provide total outsourcing solutions to ATCO in Canada and Australia. Wipro and ATCO have signed a series of master services agreements under which Wipro will provide the complete suite of IT services to ATCO. The arrangement is projected to result in revenues of over CAD 120 million ($112 million) to Wipro annually, for the next ten years, up to December 2024.
"This alliance ensures ATCO can focus on growing our core businesses of structures and logistics, utilities, and energy while partnering with Wipro for strategic, innovative IT solutions required to support our global operations, said Brian Bale, Senior Vice-President & Chief Financial Officer, ATCO. Wipro's deep domain capability and technology-leadership will also ensure we continue to deliver cost-effective services to our customers."
Anand Padmanabhan, Chief Executive - Energy, Natural Resources and Utilities, Wipro said, "We are delighted to collaborate with ATCO in this transformational initiative. Our focus will be to enable ATCO to enhance their competitiveness by deployment of strategic solutions and efficient delivery of IT services. We are confident that our domain expertise combined with the enhanced talent pool will help us support ATCO's growth. We have traditionally had a strong position in the Utilities space in Europe and this engagement provides momentum to our business in Canada and Australia. The alliance with ATCO enhances our capability to create, nurture and tap local talent to power our growth journey in Canada."
Wipro's IT services delivery model will be further strengthened in North America and Australia by ATCO I-Tek, a subsidiary of ATCO with a presence in both these geographies, which will now become a part of Wipro for an all-cash consideration of CAD 210 million ($195 million). ATCO I-Tek has been providing IT Services to ATCO for the past 15 years. The transaction is subject to customary closing conditions, the company said.
ATCO delivers service excellence and innovative business solutions worldwide with leading companies engaged in Structures & Logistics (manufacturing, logistics and noise abatement), Utilities (pipelines, natural gas and electricity transmission and distribution), Energy (power generation, natural gas gathering, processing, storage and liquids extraction) and Technologies (business systems solutions).
Wipro's consolidated net profit from continuing operations surged 41% to Rs 2230 crore on 22% growth in revenue from continuing operations to Rs 11700 crore in Q4 March 2014 over Q4 March 2013.
Wipro is a leading Information Technology, Consulting and Business Process Services company that delivers solutions to enable its clients do business better.
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