Wipro shares decline on announcement of CEO's resignation; mcap down by Rs 2,733.62 cr

New Delhi: Shares of Wipro on Monday declined by 1 per cent after the IT major announced the resignation of Thierry Delaporte as CEO and named Srinivas Pallia as its new CEO, effective immediately.

The stock dipped 1.09 per cent to settle at Rs 479.90 apiece on the BSE. During the day, it went lower by 1.40 per cent to Rs 478.40.

On the NSE, it declined 0.99 per cent to Rs 480.25 per share.

The company's market capitalisation (mcap) got wiped out by Rs 2,733.62 crore to Rs 2,50,754.38 crore.

In volume terms, 6.72 lakh shares of the company were traded on the BSE and over 133.20 lakh shares on the NSE during the day.

The announcement comes days before the Bengaluru-headquartered company is scheduled to announce its Q4 and full-year earnings for 2023-24 on April 19.

Wipro has been trailing its peers on the performance front with a subdued report card and weak guidance and saw a spate of senior-level departures, including CFO Jatin Dalal and chief growth officer Stephanie Trautman last year.

According to a Wipro release, Pallia brings to the Chief Executive Officer role extensive institutional and industry knowledge, as well as a strong track record of leadership through some of the most significant technological shifts the industry has seen.

In a BSE filing on Saturday, Wipro said its board noted the resignation of Delaporte with effect from April 6, 2024, and went on to add that he will be relieved from the employment of the company with effect from the close of business hours on May 31, 2024.

"At their meeting held on April 6, 2024... pursuant to the recommendation of the Nomination and Remuneration Committee, the Board of Directors has approved the appointment of Srinivas Pallia as the Chief Executive Officer and Managing Director of the company with effect from April 7, 2024, for a period of five years, subject to the approval of shareholders and the Central Government as may be applicable," Wipro informed in a regulatory filing.