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Wipro shares buzzing as leadership uncertain; Sanjay Jalona refuses association
Informed sources told Moneycontrol that investors were actively discussing the possibility of Wipro recruiting former L&T Infotech CEO Sanjay Jalona.
Wipro's stock experienced a decline on Tuesday of over a per cent, following a notable seven per cent surge on December 22. The downturn coincided with growing speculation surrounding the potential inclusion of Sanjay Jalona in a senior role within the company. As of 9:30 am Tuesday, Wipro's shares were trading at ₹455 on NSE, marking a 1.6 per cent decrease from the previous close. On Tuesday itself, Wipro saw a low of ₹449 and a high of ₹475.7.
Sources, consisting of at least three individuals, told Moneycontrol that investors and analysts were actively discussing the possibility of Wipro recruiting former L&T Infotech CEO Sanjay Jalona. This move was seen as a strategic effort to reinvigorate momentum and enhance the company's turnaround initiatives.
This development arises amidst mounting challenges faced by the current CEO, Thierry Delaporte, who has been grappling with moderate growth, diminishing margins, and a notable exodus of top-level executives. Delaporte's official term extends until 2025.
In response to the speculations, Wipro issued a statement "categorically and unequivocally" denying the rumours. Simultaneously, Sanjay Jalona, in communication with Moneycontrol, dismissed the rumours of his potential association with Wipro as baseless.
Who is Sanjay Jalona?
Sanjay Jalona's professional background includes a tenure at private equity firm Chrys Capital starting from July 2022, following 30 years of service in various IT services companies.
His role as the CEO of L&T Infotech earned him the moniker "Mr. Consistent" among analysts due to the firm's steady and robust operating performance under his leadership.
Jalona, who spent 15 years at Infosys and 7 years at Wipro as a regional manager between 1990-97, moved on after the LTI Mindtree merger, with Debashis Chatterjee assuming the role of a CEO.
Challenges faced by Wipro
Wipro, meanwhile, has been grappling with substantial challenges, evidenced by a significant decline in revenue growth in constant currency on a year-on-year basis since Q4 FY22.
Margins have also posed challenges, being notably lower compared to industry peers. Additionally, the company has experienced a series of high-profile departures over the last one and a half years, including the recent exits of CFO Jatin Dalal and Chief Growth Officer Stephanie Trautman.
