Friday, June 08, 2007

Indian Stock Wipro

Wipro, the Rs 15,000 crore IT services and engineering equipment provider, has announced it is merging six of its subsidiaries with itself.

While company officials were unavailable for comment, analysts say the merger will not have any material impact but is an effort to streamline administrative procedures and will reduce the management of different legal entities.

The board of directors of Wipro has approved the merger MPACT Technology, mPower Software, CMango, Wipro Infrastructure Engineering, Wipro Healthcare IT Ltd and Quantech Global Services under two schemes. The only surprise element in this move is the decision to merge Wipro Infrastructure Engineering, which is a Rs 1,000 crore business, and was, for long, maintained as a separate division.

Wipro over a period of 18 months, starting from December 2005, acquired nine companies spending close to $200 million (around Rs 820 crore). Wipro follows a practice of reporting results of acquisitions under a separate head and they will be merged with the parent company, post a period of one year.

Tips4Trade Team