Wipro share raises eyebrows

MUMBAI, FEBRUARY 16: While other infotech stocks have fallen on sustained selling pressure in the last two days, Wipro has raised eyebrows...

MUMBAI, FEBRUARY 16: While other infotech stocks have fallen on sustained selling pressure in the last two days, Wipro has raised eyebrows by zooming on the stock markets. With the SEBI and exchanges ignoring the scrip for additional margin payment, Wipro has been rising by 8 per cent on a daily basis.

The market capitalisation of Wipro has already crossed the Rs 1,75,000 crore mark. 8220;If this boom continues it will cross the Rs 2,00,000 crore mark,8221; said an NSE dealer. As a result, the value of Wipro chairman Azim Premji8217;s holding in the company is now worth over a whopping Rs 1,00,000 crore. Premji who holds nearly 75 per cent stake in Wipro will be among the top ten richest persons in the world.

Wipro scrip jumped by 8 per cent to Rs 7640.30 on Wednesday. Brokers said there were only buyers in the scrip. 8220;Sebi and stock exchanges should bring such scrips under special restrictions. This is mind-boggling. It is surprising that exchanges have not imposed additional margins on Wipro. Why is such selective volatility allowed?8221; questioned a broker.

Wipro is far ahead of other stocks in terms of market capitalisation. Infosys which comes second in market cap is far behind at Rs 65,000 crore. Hindustan Lever is third in the list. 8220;There is nothing exceptional about Wipro. It has shown a similar growth like other infotech companies. One reason could be the low floating stocks in the market. The promoter holds 75 per cent in the company8217;s equity,8221; said an analyst.

The jump in Wipro price started only two weeks ago. The share was around Rs 3,000 two weeks ago, but started zooming after it announced the third quarter results. At Wednesday8217;s level, the scrip has zoomed by over 150 in this short period. Its market cap is now more than 10 per cent of the total market cap of all companies listed on the BSE. Wipro is also worth more than all the companies listed on the B2 group of the BSE.