Wipro’s Shares Surge as Step-Down Subsidiary Liquidation Unfolds

Wipro, the prominent tech services company, experienced a notable 2 percent surge in its shares on the NSE during early trade on November 15. The positive momentum comes on the heels of Wipro’s recent announcement regarding the voluntary liquidation of its step-down subsidiary, Designit Tokyo.

As of 12:38 pm, Wipro’s stock was trading at ₹388.70, reflecting a 1.85 percent increase.

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The voluntary liquidation of Designit Tokyo, as disclosed in a regulatory filing, officially took effect on November 13. The filing highlighted that, as of March 2023, the subsidiary’s revenue contribution was a modest 0.004 percent.

In the second quarter of the fiscal year 2024 (Q2FY24), Wipro faced a revenue decline for the third consecutive quarter. The company reported a revenue of $2.7 billion for Q2FY24, marking a 2.3 percent sequential decline and a marginal 0.1 percent year-on-year decrease. Despite the challenging business environment, Thierry Delaporte, CEO and Managing Director of Wipro, emphasized their commitment to making bold decisions necessary to achieve long-term ambitions in a post-earnings release.