Wipro shares jump nearly 6% after deal with Metro AG

Wipro shares jump nearly 6% after deal with Metro AG

The stock gained 5.88 per cent to close at Rs 385.40 on BSE. During the day, it jumped 6.48 per cent to Rs 387.60 -- its 52-week high

Representative image/Credit: Reuters Photo

Shares of Wipro on Wednesday jumped nearly 6 per cent after the company said it has signed a $700 million-digital and IT partnership deal with Metro AG that will see over 1,300 staff of the German wholesaler move to the Indian IT major.

The stock gained 5.88 per cent to close at Rs 385.40 on BSE. During the day, it jumped 6.48 per cent to Rs 387.60 -- its 52-week high.

On NSE, it jumped by 5.70 per cent to settle at Rs 384.95.

On the traded volume front, 11.05 lakh shares were traded on BSE and over 4.48 crore on NSE.

An overall bullish sentiment in IT counters also helped the stock to gain ground.

"The estimated deal value for the duration of the first five years is approximately USD 700 million. With the intention to extend up to 4 additional years, it can be a potential spend of up to USD 1 billion," Wipro said in a statement on Tuesday.

As a part of this transaction, Wipro will take over the IT units of Metro AG Metro-NOM GMBH in Germany and Metro Systems Romania S.R.L, it added.

"Through this partnership, more than 1,300 employees across Germany, Romania and India will transfer to Wipro, providing them with new opportunities to advance their careers, access innovation, work with leading digital technologies and adopt new ways of working that enable agility, speed and scale in engineering," it said.

Wipro said it will deliver a complete technology, engineering and solutions transformation programme for Metro as the latter positions itself as a Wholesale 360-degree provider in the hotel, restaurant and catering food industry.

"Wipro's transformation programme will encompass cloud, data centre services, workplace and network services, along with application development and operations to provide an integrated, flexible and robust digital infrastructure to help drive Metro's transformation agenda," the statement said.