Wipro shares surge 3 per cent before ending flat on Singapore buy

Wipro shares on Monday surged as much as 3 per cent in the morning trade, before ending flat, after the Azim Premji-led IT major said it will buy Singapore's LD Waxsons Group for $144 million.

Wipro had on Saturday announced it will fully acquire LD Waxsons Group, a Singapore-based fast moving consumer goods (FMCG) company, for an all cash consideration of about $144 million (nearly Rs 790 crore).

The company said it has signed a definitive agreement to acquire 100 per cent shareholding of the LD Waxsons Group, which will give it ownership of skincare brands Bio-essence and Ginvera.

The transaction is expected to be closed within the next 60 days.

Shares of the company, however, shed most of their gains through the day's trade, before ending the day 0.61 per cent higher at Rs 381.85 on the Bombay Stock Exchange.

The shares saw an intra-day high of Rs 392 and low of Rs 381.

On the National Stock Exchange, the Wipro scrip closed the day's trade at Rs 382.10 - up 0.5 per cent.

According to market experts, the acquisition is a strategic fit to the company. It is likely to strengthen the foothold that Wipro has in the facial; skincare business further.

"We see LD Waxson as a good strategic fit. This transaction helps us consolidate our successful facial skincare business in Malaysia to a dominant leadership position, and moves us to market leadership in Singapore as well," Wipro Consumer Care and Lighting President Vineet Agrawal said.

With inputs from PTI