Tag: Wipro

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Wipro buyback may bring short-term gains

Wipro’s proposed share buyback could offer an attractive short-term opportunity for investors, with brokerages estimating possible returns of 8% to 14% over the next two to three months.

The IT company has announced a ₹15,000 crore buyback at ₹250 per share, a price higher than where the stock was recently trading in the market. This premium has drawn interest from investors looking for quick gains.

In a buyback, a company purchases its own shares from shareholders, usually at a fixed price. It is often seen as a way of rewarding investors and returning surplus cash.

Market experts said retail investors may benefit the most because buyback offers usually have a separate reservation category for small shareholders. This improves their chances of getting shares accepted under the offer.

However, analysts noted that final returns will depend on several factors, including the share price before the record date, the number of shares accepted in the buyback and market movement during the offer period.

If acceptance levels remain strong, investors could see healthy gains in a relatively short time.

The buyback is also being viewed as a positive signal from the company, suggesting management confidence despite a challenging environment for the IT sector.

Global technology spending has remained cautious, with clients delaying decisions and controlling budgets. In that backdrop, returning cash to shareholders is being seen as a supportive move.

Wipro shares have remained in focus since the announcement, with investors now watching for the record date and detailed timeline of the process.

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Wipro secures $71 mn Alpha Net contracts deal

Wipro has announced a deal to acquire select customer contracts from US-based Alpha Net Consulting for up to $70.8 million, as it looks to expand its capabilities in technology and consulting services.

Under the agreement, Wipro will take over a set of key client contracts along with related teams, giving it access to new customers and strengthening its presence in areas like software development, data engineering, and AI-led solutions.

The deal is expected to be completed by June 2026, subject to customary approvals. A part of the payment will be linked to future performance, meaning the final payout may depend on how the acquired business performs over time.

Alpha Net Consulting, based in California, works in areas such as enterprise applications, digital services, and managed solutions. By bringing these contracts under its fold, Wipro aims to build on its existing strengths and offer more integrated services to global clients.

The contracts involved in the deal generated around $37 million in revenue last year, providing an immediate addition to Wipro’s business.

The company said the move is part of its broader strategy to focus on high-growth areas like artificial intelligence, cloud, and digital transformation, where demand continues to rise as businesses modernise their operations.

For Wipro, this is another step in its approach of making targeted, smaller acquisitions to strengthen specific capabilities rather than large-scale takeovers.

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Wipro shares jump 3% on buyback buzz

Shares of Wipro rose about 3% after the company announced its board will consider a share buyback on April 16, alongside quarterly results. This would be its first buyback in three years, drawing strong investor interest.

The stock has declined over 20% this year, so the potential buyback is seen as a step to support prices and improve sentiment. While details such as size and price are yet to be disclosed, market expectations are building around a sizable offer. Analysts say the move could boost confidence amid ongoing weakness in the IT sector.

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Wipro to acquire Olam’s IT unit for $375 mn

Wipro has announced that it will acquire the IT and digital services business of Singapore-based Olam Group for $375 million, in a move aimed at expanding its capabilities and securing long-term business.

The deal includes the acquisition of Mindsprint, Olam’s technology services arm, which will become a fully owned subsidiary of Wipro after the transaction is completed. Mindsprint provides services such as digital transformation, cloud, cybersecurity, and technology consulting, with a strong focus on industries like agriculture, food, and manufacturing.

As part of the agreement, Wipro has also signed a long-term contract with Olam to manage its technology operations. The partnership is expected to run for eight years and could be worth over $1 billion in total, giving Wipro steady revenue over the period.

The acquisition is seen as a strategic step for Wipro, helping it deepen its expertise in specific industries, particularly in the agriculture and food sectors. By integrating Mindsprint’s specialised knowledge with its own global capabilities, Wipro aims to offer more targeted and end-to-end digital solutions.

Investors responded positively to the announcement, with Wipro’s shares rising in early trade. Market participants view the deal as a strong move that not only brings in new capabilities but also ensures a stable and long-term client relationship.

For Olam Group, the sale is part of a broader plan to streamline its operations and focus on its core businesses. By divesting its IT unit, the company aims to unlock value while continuing to benefit from Wipro’s technology services through the partnership.

The deal is expected to be completed by mid-2026, subject to regulatory approvals.

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Wipro partners Harness for AI-led software delivery

Wipro has partnered with Harness to boost AI-driven software delivery for enterprises worldwide. The collaboration will combine Wipro’s AI capabilities with Harness’ delivery platform to streamline how software is built, tested, and deployed.

The partnership aims to reduce manual processes, improve efficiency, and speed up development cycles while maintaining quality and security. It will help companies adopt AI-native development methods and respond faster to changing business needs.

The move highlights the rising demand for automation and AI in modern software development across industries.

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Wipro CEO sees AI boosting IT demand

Wipro CEO Srinivas “Srini” Pallia said Indian IT services are seeing higher demand as companies move from small AI experiments to large-scale implementations, speaking at the World Economic Forum in Davos.

Wipro is bidding for both major and minor AI projects as clients adopt technology at different paces. Despite some pricing pressures due to faster deliveries with smaller teams, Pallia expects AI-driven cost savings to encourage more projects.

While overall tech budgets may remain stable, spending is increasingly focused on AI and efficient IT services. Wipro has invested $1 billion to enhance its AI offerings.