IT services major Wipro on Wednesday said that its board of directors has given permission to merge five units within itself. The company has chosen to combine its wholly-owned subsidiaries – Wipro HR Services India Private Limited, Wipro Overseas IT Services Private Limited, Wipro Technology Product Services Private Limited (earlier known as Encore Theme Technologies Private Limited), Wipro Trademarks Holding Limited, and Wipro VLSI Design Services India Private Limited – with its parent company Wipro Limited.
The board had organized its meeting on 17 and 18 October this year wherein the amalgamation scheme was approved. Wipro in its stock exchange filing announced the same. The merger scheme relies on getting the necessary statutory and regulatory approvals. This involves the approval of the National Company Law Tribunal.
We will discuss here the services offered by each of its subsidiary companies. Wipro HR Services India Private Limited delivers services in the regions of human resources management, compensation, employee benefits, software development, research and training facilities, and information technology-enabled products and services.
Wipro Overseas IT Services Private Limited is focused on the business of computer software development, web content management solutions, and developing and implementing application software, web-based applications, onsite consulting, and offshore software development services.
Wipro Technology Product Services Private Limited designs software products for commercial purposes and licenses them. Wipro Trademarks Holding Limited involves services connecting to the registration, acquisition, and licensing of trademarks, brand names, designs, patents, copyrights, and other intellectual property rights.
Wipro VLSI Design Services India Private Limited is involved in the business of manufacturing and creating all types of software including web and mobile phone software.
As you understand now what each subsidiary company specializes in, we will talk about the parent company Wipro Limited. The company provides its reasoning for mergers stating that the aim is to make business processes smoother and also allow for synergies of operations, decline the overheads involving administrative, managerial, and other expenditures, and also make sure that the legal entity structure has been optimized. It will also reduce majorly the enhancement of legal and regulatory compliances.
The move comes on the same day when the IT major that is based in Bengaluru declared its Q2 results for the financial year 2023-24. As the Transferor Companies are wholly owned subsidiaries of the Transferee Company, there will be no issuance of Transferee Company shares in place of or in exchange for Transferor Company shares within the merger decision.
Therefore, the ownership structure of the Transferee Company will stay unchanged given the absence of any share issuance, said the parent company Wipro Limited.
For the unversed, Wipro is a multinational corporation in India that delivers services ranging from technology, consultancy, and business process services, among others. It is one of the major Big Tech firms in India. Founded by M.H. Hasham Premji and owned by Azim Premji, the Bengaluru-headquartered company has a revenue of 1,100 crores USD as of 2023. The company’s present CEO is Thierry Delaporte since 2020. Wipro has an employee strength of 2.4 lakh employees.