Wipro to remain in focus on acquisition

The stock of Wipro will react to its acquisition plans of Singapore-based FMCG company L.D. Waxsons Group for Rs 785 crore. This is the first acquisition after Wipro last month restructured its business divisions to hive off non-IT businesses into a separate unlisted entity called Wipro Enterprises. The company said this transaction is expected to be closed in the next 60 days. It will be interesting to know how the shareholders will react to the news, as the company had said that there were no plans to list Wipro Enterprises. As per the restructuring scheme, public shareholders can opt for one equity share with a face value of Rs 10 in Wipro Enterprises Ltd for every five equity shares with face value of Rs 2 each in Wipro Ltd. They could also choose to receive one 7 per cent redeemable preference share in Wipro Enterprises, with face value of Rs 50 for every five equity shares of Wipro Ltd that they hold.