Wipro, led by Azim Premji, announced a significant move as its board approved the merger of five wholly-owned subsidiaries into the parent company, ‘Wipro Ltd.’ The subsidiaries include Wipro HR Services, Wipro Overseas IT Services, Wipro Technology Product Services, Wipro Trademark Holding, and Wipro VLSI Design Services. The merger will happen only if it gets approval from the regulators.
The board, in its meeting on October 17-18, 2023, has approved a plan to merge different parts of the business. This decision is part of a strategy to bring together operations, make things work better together, cut costs, organize the legal structure, and simplify legal and regulatory responsibilities.
Wipro emphasized that since the subsidiaries are wholly-owned entities, no shares of the parent company will be allotted under the scheme of amalgamation in lieu or exchange for the shares of the subsidiaries. Consequently, this approach ensures that there will be no alterations in the shareholding pattern of Wipro Ltd. as a result of the proposed merger.
The company made it clear that the plan to bring everything together depends on getting the right approvals from the law. This fits into Wipro’s bigger plan to make things work better, encourage teamwork inside the company, and make its structure simpler for long-term success.
