Wipro trading lower on World Bank Ban
The stock of Wipro Ltd nosedived almost 8.4% in opening trade following the company's disclosure to the exchanges that it has been deemed ineligible for World Bank contracts till 2011. The scrip was trading at Rs 238.55, down 5% around 10.12 am.
By Jessica Irani, ET Bureau |
MUMBAI: The stock of Wipro Ltd nosedived almost 8.4% in opening trade following the company's disclosure to the exchanges that it has been deemed ineligible for World Bank contracts till 2011. The scrip was trading at Rs 238.55, down 5% around 10.12 am.
Eraly in the day, Wipro disclosed to the stock exchanges that they would not be awarded any direct contracts from World Bank from 2007-2011. The IT company had awarded 1,750 American Depository Shares (ADS) worth $72,000 at the IPO price to World Bank's CIO and two other senior staff members. However in a statement to teh media, Wipro said that its cummalative revenues from World bank are less than a $1 million in the past 8 years.
In the year 2000, when Wipro was listed in the US stock exchanges, the company offered a commonly utilised and SEC (securities and exchange commission) approved direct share program (DSP) that allowed employees and clients to purchase ADSs at the IPO market price. Shares were given to Wipro's employees and clients as part of the scheme.
Brokers said that the negative sentiment is due toscepticism as to why the company had not disclosed the ban till now.
Eraly in the day, Wipro disclosed to the stock exchanges that they would not be awarded any direct contracts from World Bank from 2007-2011. The IT company had awarded 1,750 American Depository Shares (ADS) worth $72,000 at the IPO price to World Bank's CIO and two other senior staff members. However in a statement to teh media, Wipro said that its cummalative revenues from World bank are less than a $1 million in the past 8 years.
In the year 2000, when Wipro was listed in the US stock exchanges, the company offered a commonly utilised and SEC (securities and exchange commission) approved direct share program (DSP) that allowed employees and clients to purchase ADSs at the IPO market price. Shares were given to Wipro's employees and clients as part of the scheme.
Brokers said that the negative sentiment is due toscepticism as to why the company had not disclosed the ban till now.
Too busy to trade in stocks? Invest in Mutual Funds with ET Money!
Bookmark or read stories offline -
Download ET Markets APP
Download ET Markets APP
ADVERTISEMENT
