Mumbai: India’s third largest IT services exporter Wipro dipped as much as 12% in early trade on Monday on the bourses, after the company said it is not eligible to bid for contracts with the World Bank till 2011.
Shares of Wipro Technologies skid over 12% to touch its intra-day low of Rs220 on the Bombay Stock Exchange. Later, the scrip was trading at Rs240.50 down 4.05% on the bourse.
According to the revised disclosure policies, the company disclosed its vendor status with World Bank as per which the company said it is not eligible to contest direct contracts with the World Bank till 2011.
On the National Stock Exchange, the company’s shares slipped 11.25% to touch an intra-day low of Rs222.70, from its previous days close.
Later it was quoting at Rs240.60, down 4.12% on the NSE and nearly 5 lakh shares changed on the bourses.
In June 2007, the World Bank had determined the IT firm to be ineligible to contest direct contracts from the global lender for the period 2007-2011, citing conflict of interests, a Wipro spokesperson said.
Marketmen said investor sentiment was affected because of the disclosure. Though Wipro said its revenues from World Bank were insignificant and the said decision of the World Bank would not adversely affect its business and results of operations, the move was a negative trigger for the company.
The company further said, “Our inability to get future business from World Bank will not adversely affect our business and results of operations.”
“To date, Wipro’s revenue from the World Bank is insignificant,” a statement from the company said.