Wipro Secures $500 Million Deal with Leading US Communication Service Provider
In a significant development, IT major Wipro has clinched a $500 million deal from a prominent US-based communication service provider. The company announced in a stock exchange filing on Thursday that the agreement spans five years, during which Wipro will deliver managed services and industry-specific solutions for the undisclosed US firm. This substantial deal has bolstered investor confidence, leading to a 2% rise in Wipro’s share price, which closed at Rs 461.6 apiece.
The new contract aligns with Wipro's strategic focus on expanding its footprint in the communication services sector and reflects its robust capabilities in managed services. However, the company has refrained from disclosing the name of the US client involved in this transaction.
This announcement comes amid recent internal turbulence at Wipro. Last month, a significant majority of public shareholders opposed the $4.33 million cash severance package proposed for former CEO Thierry Delaporte, who resigned on April 6. According to regulatory filings, nearly 80% of shareholders voted against the severance, marking a notable instance of shareholder activism within the company.
In parallel, the Bombay Stock Exchange (BSE) has revealed that Adani Ports and Special Economic Zone (SEZ) will replace Wipro in the Sensex from June 24. This reorganization follows BSE's periodic review, marking Wipro's exit from the benchmark index on the same day.
This mix of a new strategic win and recent shareholder dissent, coupled with the forthcoming exclusion from the Sensex, underscores a dynamic period for Wipro as it navigates both opportunities and challenges in its business and governance landscape.