5 subsidiaries of Wipro will cease to exist! Parent company announced merger

5 subsidiaries of Wipro will cease to exist!  Parent company announced merger

Wipro Subsidiary Companies Merger: The country’s leading IT company Wipro on Wednesday announced the merger of five subsidiary companies with its parent company Wipro Limited. On Wednesday, its shares fell by about 1 percent and closed at Rs 407.50 per share. The decision to merge was taken in the board meeting and the earnings for the September quarter were also approved. 

It was said in the board meeting that Wipro HRServices, Wipro Overseas IT Services, Wipro Technology Product Services, Wipro Trademark Holding and Wipro VLSI Design Services will be merged into the parent company. However, the merger will still require statutory and regulatory approval, including that of the National Company Law Tribunal (NCLT). 

Merger is happening due to these four reasons 

According to ET report, Wipro has given four reasons for the merger. This includes strengthening business operations, enabling operational synergy, reducing administrative, management and other expenses etc. In the merger, all the subsidiaries are wholly owned. For this reason new shares will not be issued in the merger. Also, there will be no change in the pattern of shares. 

How much profit was recorded 

Wipro Overseas IT Services had zero revenue at the end of March 2023, Wipro HR Services recorded revenue of Rs 67,753 crore, Wipro Technology Product Services recorded revenue of Rs 85.3 crore, Wipro VLSI Design recorded revenue of Rs 218 crore and Wipro Trademarks recorded revenue of Rs 29 lakh. Is. Wipro has also recorded a net profit of Rs 2,667.3 crore, which is a jump of 0.70 percent.  

Reduction in the number of employees

The number of employees in Wipro is declining for the fourth consecutive quarter. There has been a decrease in the number of employees by 5051 during the September quarter. With this the total number of employees has now increased to 2,44,707. However, the company had also appointed 577 employees during September. 

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