Yesterday when the news broke that Wipro had been barred from bidding to World Bank projects for 4 years... My first instinct was the great India IT dream melting down like the Wall Street.
May be the fear psychosis so accentuated by the Satyam fraud.
As the dust settles you realise World Bank directive would do little to affect the company as less than US$1m cumulative revenue in last eight years was accrued from World Bank. However, the stock price declined by a good 10%.
The corporate is charged of bribery but considering the track record of the company hope the worries will soon be layed to rest. For though the Satyam fraud was a shocker, it was more of a close you eyes and wish it dint happen kind of an accident as Satyam has been creating bad vibes from a long time ( Few can forget Mr.E. Shridharan's allegations on the Hyderabad Metro project allocation to Maytas).
So time will tell if World Bank move against Wipro is as disastrous as it seemed yesterday...
2 comments:
i dont think world bank's diclossure will do any harm to a company like Wipro....as the company has a good track record. also its a ban imposed on June 2007..
disclosure was made by wipro itself (Satyam effect). the ban was imposed a year back but was just not publicized. i don't c it affecting Wipro the clients look at capabilities of the firm. Company like Goldman Sachs was fine big time in Japan for non compliance and willful concealment of facts but even then it is one of the only two pillars of wall street that is standing, and no one really remembers the incident. if u are really good at what u do people don't mind occasional errors.
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