Wipro CEO Resignation: Anticipated Impact on Share Opening Tomorrow
Wipro, a prominent IT giant, closed the week with its shares slightly down at ₹485 per share on the National Stock Exchange. However, Monday’s trading session is expected to shine the spotlight on Wipro once again, following the announcement of CEO and MD Thierry Delaporte’s resignation on April 6. Srinivas Pallia has been named as Wipro’s new MD and CEO, sparking anticipation and interest among investors.
Market analysts are optimistic about the impact of Pallia’s appointment, citing his extensive industry knowledge and leadership within Wipro. Santosh Meena, Head of Research at Swastika Investmart Ltd., foresees a positive market reaction, predicting a potential surge in Wipro’s stock price to around ₹525 in the coming days.
Delaporte’s resignation, effective immediately on April 6, came as a surprise to many, as his original term as CEO was scheduled to conclude in July 2025. Wipro officially announced his departure through a regulatory filing to the stock exchanges, stating that he would be relieved from his duties by the close of business hours on May 31, 2024.
Under Delaporte’s leadership since July 2020, Wipro’s stock has experienced substantial growth, surging by 121.43%. Despite this growth, concerns have been raised about Wipro’s stock performance lagging behind its industry peers during Delaporte’s tenure. However, market analysts remain hopeful about Wipro’s future prospects under Pallia’s leadership.
In addition to stock performance, Wipro has demonstrated impressive financial growth during Delaporte’s time as CEO. The company reported a significant 47% increase in revenue from July 1, 2020, through the third quarter of fiscal year 2023-24 (Q3FY24). Moreover, Wipro’s net profit also saw a commendable rise of 5.5% under Delaporte’s guidance.
Despite these achievements, Wipro’s stock performance has trailed its peers, raising concerns among investors. However, with the appointment of Pallia as the new CEO and MD, market sentiment is optimistic about Wipro’s future trajectory. Pallia’s leadership and industry experience are expected to drive further growth and innovation within the company, potentially leading to an upward trajectory in Wipro’s stock price in the foreseeable future.
