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e-lights
NANDITA DATTA
Wipro denies ADR float
Wipro has denied reports that it is planning an American depository receipts issue. In a statement to the Mumbai Stock Exchange, the IT major said there had been no decision regarding an ADR float so far. The news sent the stock plunging from its initial high opening. In early trade, the stock zoomed to Rs 7204 from Friday's close of Rs 6670 on newspaper reports a $ 150 million ADR issue had been lined up and that JM Morgan Stanley had been appointed as lead manager. The stock plummeted below the Rs 7,000-mark to Rs 6705 as soon as news of the denial spread. However, some buying towards the fag-end, saw the stock closing higher at Rs 6978.4After falling from a high of Rs 9,800 in mid-February, Wipro had been on the rise because of ADR rumours. With the company denying ADR reports, the stock could attract some selling. However, positive reports like the recent tieup with Microsoft and deal with London-based Symbian would keep interest alive in the counter. Wipro is a diversified company - with a presence in fields like fluid power, lighting, medical equipment, financial services, software and hardware. But the focus is clearly on IT - software and hardware together account for over 60 per cent of revenues. The infotech division has an impressive clientele that includes Fortune 500 companies like GE, AT&T, Bill Northern, Sun, Tandem and Seagate. Prospects for Wipro appear bright. In software Wipro's focus on business-to-business e-commerce is likely to pay off. The hardware division, too, is expected to do well on account of the the surge in orders for hardware equipment. Copyright © 2000 Indian Express Newspapers (Bombay) Ltd.
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