Wipro fell 0.89% to Rs 457.25 at 12:00 IST on BSE after the company said it will pay a $5 million civil money penalty to the US Securities and Exchange Commission to close a six-year old embezzlement investigation.
The announcement was made after market hours yesterday, 22 December 2016.Meanwhile, the BSE Sensex was up 8.94 vpoints, or 0.03%, to 25,988.54.
On the BSE, so far 15,000 shares were traded in the counter, compared with average daily volumes of 1.17 lakh shares in the past one quarter. The stock had hit a high of Rs 463 and a low of Rs 455.85 so far during the day.
The stock hit a 52-week high of Rs 606.75 on 20 April 2016. The stock hit a 52-week low of Rs 410 on 9 November 2016. The stock had outperformed the market over the past 30 days till 22 December 2016, rising 2.95% compared with the 0.28% fall in the Sensex. The scrip had also outperformed the market in past one quarter, falling 3.93% as against Sensex's 9.38% decline.
The large-cap company has equity capital of Rs 486.17 crore. Face value per share is Rs 2.
Wipro announced that it has reached an agreement with the US Securities and Exchange Commission (SEC) to formally resolve the previously disclosed six-year-old investigation. In agreeing to the settlement, the company neither admits nor denies the SEC's allegations that the company violated certain provisions of the Securities Exchange Act of 1934 (Exchange Act). The SEC has credited the company's cooperation and remedial measures in arriving at the settlement. Under the terms of the settlement, the Company consents to pay a civil money penalty of $5 million, to cease and desist from committing or causing violations of the Exchange Act, and to undertake certain follow through actions, the company said in a statement.
Wipro said it takes pride in its commitment to the highest standards of integrity and corporate governance. The company is pleased to formally resolve and put this six-year-old matter behind it. The company believes it is in its best interests and that of all its stakeholders to resolve this prolonged matter and has accordingly reached the settlement, the company added.
The matter relates to embezzlement of funds worth about $4 million by an employee which Wipro says it discovered in December 2009. The SEC initiated an inquiry in September 2010.
Wipro's consolidated net profit rose 0.9% to Rs 2070.40 crore on 1.45% rise in net sales to Rs 13896.80 crore in Q2 September 2016 over Q1 June 2016.
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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