India’s fourth largest IT services firm, Wipro Ltd., approved the merger of its five wholly owned subsidiaries with itself.
The board of directors of the company considered and approved a scheme of amalgamation, providing for the merger of five wholly owned subsidiaries with and into Wipro, according to an exchange filing on Wednesday.
The five subsidiaries are Wipro HR Services India Pvt., Wipro Overseas IT Services Pvt., Wipro Technology Product Services Pvt., Wipro Trademarks Holding Ltd., Wipro VLSI Design Services India Pvt..
The scheme is subject to necessary statutory and regulatory approvals under applicable laws, including approval by the National Company Law Tribunal, the filing said.
The IT major said that the rationale behind the merger was to consolidate and enable synergies of operations, to ensure optimised legal entity structure and to significantly reduce multiplicity of legal and regulatory compliances.
The merger will have no change in the shareholding pattern as there is no issue of shares, it said.
The merger will have no impact on the business operations, Wipro’s Chief Financial Officer, Aparna Iyer, said at the post-earnings media interaction on Wednesday. “It is only for administrative convenience.”
Wipro on Wednesday reported a decline in its revenue by 1.38% quarter-on-quarter to Rs 22,516 crore for the quarter ended September, as “slower for longer” demand as well as weakness in consulting business weighed on the top line.
Shares of Wipro closed 0.95% lower at Rs 407.5 apiece, as compared with a 0.71% decline in the benchmark Nifty 50 on Wednesday. Bloomberg