The resignation of Wipro CEO and MD Abidali Z Neemuchwala, one year before his term ends has sent the Wipro stock tumbling down almost 2% as uncertainty prevails over who would step into Neemuchwala’s shoes and lead the company. Wipro share was trading Rs 236 apiece down from Rs 240 which is where it closed yesterday.
In a filing to the National Stock Exchange, Wipro said that Neemuchwala has resigned but will continue to hold office until a successor is appointed. “Chief Executive Officer and Managing Director Abidali Z Neemuchwala has decided to step down due to family commitments. The Board of Directors has initiated a search to identify the next Chief Executive Officer. Abid will continue to hold the office of CEO & Managing Director until a successor is appointed for a smooth transition and to ensure that business continues as usual.”
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Wipro Chairman, Rishad Premji thanking the outgoing CEO of the company said, “Over the last four years, Abid helped build a strong execution mindset, drove key acquisitions and scaled our Digital business globally. We wish him the very best for the future.”
The leading global information technology behemoth issues a statement saying that the risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding fluctuations in our earnings, revenue, and profits.
Prior to Wipro, Neemuchwala held key leadership roles with Tata Consultancy Services, in business, technology, sales, operations and consulting, according to the company website. In 2012, he was recognized for his contribution to the IT services industry by the Shared Services Organization of IPOC.
Neemuchwala said that he was honoured to have served Wipro, a company with a legacy of almost 75 years. “We have made considerable progress in our transformation journey, improved our delivery engine and institutionalised deeper client centricity. I thank Azim Premji, Rishad, our Board of Directors, my Wipro colleagues and customers for their support over the years,” he added.
Nifty 50 was trading down at 11,964 losing 0.59% since the start of trade on Friday, while Nifty IT was largely in red with only Tech Mahindra Limited and NIIT Technologies Limited trading in the green among the information technology stocks.
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Source: Financial Express
