Wipro gets thumbs down

Wipro yesterday announced acquisition of Capco for $1.45 billion, a global management and technology consultancy providing digital, consulting and technology services to financial institutions in the Americas, Europe and the Asia Pacific.

This acquisition will make Wipro one of the largest end-to-end global consulting, technology and transformation service providers to the banking and financial services industry.

In2020, Capco had a revenue of $700 million and this purchase will add 30 new clients to Wipro’s portfolio.

But the market does not seem too enthused with this news. Though the stock opened Rs.2 up at Rs.440, from there it only slipped into the red to Rs.421.65, down 4%. Its 52-week high is at Rs.467.20.