Wipro, a top IT company in the country, announced on Wednesday that it’s joining five smaller companies with its main company, Wipro Limited.
On the same day, its stock price fell by about 1 percent, closing at Rs 407.50 per share.
This decision was made during a board meeting, and they also approved their earnings report for the September quarter.
During the board meeting, they mentioned that Wipro HR Services, Wipro Overseas IT Services, Wipro Technology Product Services, Wipro Trademark Holding, and Wipro VLSI Design Services will become part of the main company.
But remember, the merger still needs official approval, including from the National Company Law Tribunal (NCLT).
The merger is taking place for these four reasons
As per a report from ET, Wipro has four reasons for the merger.
These reasons are: making their business stronger, improving how they work together, cutting costs related to administration and management, and more.
In this merger, Wipro owns all the smaller companies completely.
Because of this, they won’t create new shares during the merger, and the way shares are structured won’t change.
How much profit was made?
Wipro Overseas IT Services didn’t earn any money by March 2023.
Wipro HR Services made Rs 67,753 crore, Wipro Technology Product Services earned Rs 85.3 crore, Wipro VLSI Design generated Rs 218 crore, and Wipro Trademark received Rs 29 lakh.
Wipro also made a profit of Rs 2,667.3 crore, which increased by 0.70 percent.
A decrease in the number of workers
The count of workers at Wipro has been going down for four straight quarters.
During the September quarter, there were 5,051 fewer employees.
This means the total number of employees has now gone up to 2,44,707. But in September, the company also hired 577 new employees.
