The shares of IT giant Wipro ended the week on Friday by closing over 0.49 per cent lower to ₹485 per share on the National Stock Exchange (NSE). The Wipro stock is expected to be on focus on Monday’s trading session as its CEO and MD Thierry Delaporte announced his resignation from his position on April 6 and Srinivas Pallia will succeed him as Wipro’s new MD and CEO.
Market analysts believe that the market is likely to react positively to the news of appointment of Srinivas Pallia as the new CEO and MD.
“The market is likely to react positively to the appointment of Srinivas Pallia, a veteran Wipro leader with extensive industry knowledge, as the new CEO. We can expect a move towards 525 levels in the coming days,” Santosh Meena, Head of Research, Swastika Investmart Ltd. told Livemint.
Also read: Wipro’s stock price rose 121% during Thierry Delaporte’s tenure, revenue up 47% in last 14 quarters
He further said that the stock is likely to gain and move to 525 levels in the upcoming days.
The tech major further informed in a regulatory filing to the stock exchanges that Delaporte’s term as CEO, originally scheduled to conclude in July 2025, was unexpectedly shortened when he resigned in the late hours of Saturday.
’The Board of Directors noted the resignation of Mr. Thierry Delaporte with effect from April 6, 2024. He will be relieved from the employment of the Company with effect from the close of business hours on May 31, 2024,” said Wipro.
Wipro’s stock price growth has lagged its peers in recent years, raising concerns several senior leaders exited during Thierry Delaporte’s tenure as CEO.
Also read: Wipro MD Thierry Delaporte resigns, Srinivas Pallia to succeed as CEO
Under his tenure since July 2020, the Wipro stock has surged by 121.43 per cent. The shares of the fourth-largest technology company has risen over 29.92 per cent in the last one year.
During Delaporte’s tenure, the stock has yielded returns exceeding 121 per cent over the past 14 quarters.
Regarding Wipro’s financials, the technology giant witnessed a substantial 47 per cent surge in revenue from July 1, 2020, through the third quarter of fiscal 2023-24 (Q3FY24). Additionally, under Delaporte’s leadership as Wipro CEO, the net profit also experienced a commendable increase of 5.5 per cent.
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Published: 07 Apr 2024, 04:56 PM IST