Shares of Wipro, on Tuesday, slumped nearly 12 per cent, wiping-off Rs.11,882 crore from its market value, on the first day of trade as a standalone IT stock after the company hived-off its three non-IT business divisions into a privately-held company.
After making a weak opening, shares of the company further tanked 11.41 per cent to Rs.397.25 on the Bombay Stock Exchange.
At the National Stock Exchange, shares of the company tumbled 11.63 per cent to Rs.396.60.
“We expect Wipro to trade at 10 per cent lower than the current market price post this event (demerger).
“The demerger will enable the company to focus on its growth strategy in the IT services and products space and increase its competitiveness in the market,” Edelweiss Research said in a report.
In November last, the Wipro board had approved the demerger of the non-IT businesses — Wipro Consumer Care & Lighting (including furniture business), Wipro Infrastructure Engineering (hydraulics and water businesses) and Medical Diagnostic Product & Services business — into a privately-held company to be named Wipro Enterprises Ltd. The demerger has been effective from March 31.