IT company Wipro on June 3 touched the Rs 3 lakh crore mark in market capitalisation for the first time in its history, making it the third Indian IT firm after Infosys and TCS to attain the feat.
The stock rose on June 3 after news that the company had invested $1.2 million in SaaS (software as a service) startup Squadcast as part of a partnership to provide IT incident response and site reliability engineering services. Under the deal, which is expected to be completed before June 30, Wipro will buy a strategic minority stake of less than 20% in Squadcast.
Wipro shares soared over 1 per cent on June 3 to scale its new lifetime of Rs 550, leading its market-cap to cross the Rs 3.01 lakh crore mark. However, the stock retreated to Rs 543.80 at 11.15 am (IST). BSE Sensex was trading 217.88 points, or 0.43 per cent, higher at 52,071 at that time.
“We believe Wipro’s strong full services capabilities across applications, infra, BPS (business process services) and engineering will help in winning integrated deals, and help win large deals as seen in recent quarters. Hence, we expect the company to register 21% YoY dollar revenue growth in FY22E (of which 13% is organic and rest through acquisition) and 13% YoY in FY23E,” ICICI said in a note to investors.
The IT firm recently sold its entire stake in Denim Group for a consideration of $22.4 million (about Rs 160 crore), which also stoked positive sentiment for the stock.