Stock prices for Indian technology services company Wipro climbed sharply Monday morning after the firm announced a major acquisition worth $375 million. The company agreed to purchase the information technology operations of Singapore’s Olam Group, marking a significant expansion move.
Trading data showed Wipro’s stock climbing as high as 3.2% during Monday’s session, with shares still up 1.9% by 9:34 a.m. local time. The performance made Wipro the strongest performer on India’s technology sector index, which gained 0.5%. Wipro also ranked as the second-best performer on the benchmark Nifty 50 index, even as that broader market measure declined 0.2%.
According to Monday’s announcement, Olam Holdings will transfer 200 million shares of Mindsprint, its technology and digital services division, to Wipro Networks. Olam Holdings operates as part of Singapore’s food and agriculture business conglomerate.
Mindsprint delivers technology solutions, cybersecurity services, and digital transformation support across multiple industries. The company serves clients in food and agriculture, manufacturing, retail, consumer goods, healthcare, and life sciences sectors.
Financial analysts at ICICI Securities characterized the transaction as Wipro’s most substantial acquisition ever, noting it should improve revenue predictability while enhancing the company’s consulting abilities and specialized knowledge in food and agriculture markets.
The brokerage firm explained that this deal brings specialized industry knowledge, proprietary technology platforms, and dedicated service relationships that create more strategic partnerships compared to traditional outsourcing contracts.
As part of the broader agreement, Olam committed to an eight-year service contract guaranteeing $100 million in annual spending with Wipro. Company officials project this contract could exceed $1 billion in total value over its duration.
Despite Monday’s gains, Wipro shares remain down 24.5% for the year, while the broader technology sector index has fallen 19.2% during the same period.
