Shares of Wipro Ltd surged as much as three per cent in the morning trade today, after the IT major said it will buy Singapore’s LD Waxsons Group for $144 million.
On Saturday, Wipro Ltd had said 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).
Reacting to the development, the scrip opened on a bullish note and then surged 3.28 per cent in the morning trade on the BSE to touch an intra-day high of Rs 392.
A similar movement was witnessed on the National Stock Exchange as well, where the stock opened at Rs 389.85, then gained further ground to touch an early high of Rs 390, higher by 2.57 per cent from its previous closing price.
The company said it has signed a definitive agreement to acquire 100 per cent shareholding in 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.
According to market experts, the acquisition is a strategic fit for the company. It is likely to strengthen the foothold that Wipro has in facial skincare business further.
“We see LD Waxsons 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.