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WIPRO’s stocks jump in Mumbai on $230m Edgile acquisition

By Munikoti Rochan

08:02, 21 December 2021

An image of Wipro's logo on a tablet
The software exporter said it will shell out $230m to buy Texas-headquartered Edgile – Photo: Shutterstock

Stocks in technology giant Wipro shot up in Mumbai on news that the company will acquire a US-based cybersecurity consulting firm named Edgile.

The stock jumped some 4.67% to INR697.10 in afternoon trade on the National Stock Exchange (NSE) on Tuesday, a day after the software exporter said it will shell out $230m to buy Texas-headquartered Edgile.

Wipro told the bourses the move will “strengthen (its) leadership in strategic cybersecurity services”. The deal is subject to regulatory approvals. The cash transaction is expected to be completed before 31 March 2022, as per Monday’s regulatory filing.

Cybersecurity consulting firm Edgile

Edgile is privately held and has an onsite workforce of 182 employees. The firm logged revenues of $44.1m in the calendar year 2020.

Abry Partners, a minority private equity investor in Edgile, will fully exit its investment in the latter with this transaction.

Bengaluru-headquartered Wipro has a market capitalisation of about INR3.78trn on the NSE, where its stocks have advanced some 79% so far this year.


0.72 Price
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Long position overnight fee -0.0253%
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127.75 Price
+6.400% 1D Chg, %
Long position overnight fee -0.0262%
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147.02 Price
-0.540% 1D Chg, %
Long position overnight fee -0.0262%
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Overnight fee time 22:00 (UTC)
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249.42 Price
+5.620% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 22:00 (UTC)
Spread 0.18

How does the deal help Wipro?

Edgile focuses on risk and compliance, information and cloud security, and digital identity, said the statement.

The target “is recognized by security and risk leaders for its unique business-aligned cybersecurity capability, deep understanding of the changing regulatory environment and enabling cloud transformations that help secure the modern enterprise...Wipro and Edgile will develop ‘Wipro CyberTransform’, an integrated suite that will help enterprises enhance boardroom governance of cybersecurity risk, invest in robust cyber strategies, and reap the value of practical security in action,” it added.

Growing cybersecurity business

Earlier this year, Wipro boosted its cybersecurity business by acquiring Ampion, a cybersecurity services provider in Australia, in addition to purchasing cybersecurity practice at Capco, a consultancy in the BFSI sector in Europe and the US.

Meanwhile, through its Wipro Ventures arm, the software developer continues to invest in innovative cybersecurity start-ups, it informed shareholders.

Read more: Nike (NKE) beats estimates for Q2 earnings

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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
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CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
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