Wipro’s stake in solar project SPV trimmed to 7.07%, check details

IT major Wipro said on Friday its stake in FPEL Ujwal Private Limited has been diluted to 7.07% from 9.95%. Shares of Wipro ended 1.33% lower at Rs 470.90 on BSE. Market cap of Wipro fell to Rs 2.46 lakh crore on BSE. Total 3.50 lakh shares of the firm changed hands amounting to a turnover of Rs 16.57 crore on BSE.

The announcement was made after market hours on Friday. Wipro shares have gained 26.53% in a year but lost 1.34% this year. The stock has a one-year beta of 0.8, indicating very low volatility during the period. In terms of technicals, the relative strength index (RSI) of Wipro stands at 39, signaling the stock is neither oversold nor overbought. The IT stock stands lower than the 10 day, 20 day, 50 day, 100 day but higher than the 150 day and 200 day moving averages. 

Wipro said FPEL has issued equity shares to new offtakers and turned its existing Optionally Convertible Debentures (OCDs) into equity shares. As a result of these transactions, Wipro’s shareholding has reduced from 9.95% to 7.07% with effect from April 11, 2024.

In September last year, the company inked a definitive agreement to subscribe for the equity share capital in FPEL Ujwal Private Limited for a value of Rs 6.3 crore. The transaction was expected to be completed before May 31, 2024.

The stake acquisition was aimed to enhance the proportion of usage of renewable energy for Wipro offices in Karnataka.

"This project is expected to help us move closer to our goal of becoming net zero by 2040 and 100% renewable energy for purchased electricity by 2030," the company said.

FPEL was incorporated in February 2022 and is a Special Purpose Vehicle formed by Fourth Partner Energy Private Limited for the purpose of setting up captive solar power projects in Karnataka.