Wipro gains on winning 7-year contract from ICICI Bank

One of the leading IT service providers of the country, Wipro Limited has bagged a seven-year engagement, valued at US$300 million, from ICICI Bank to provide a comprehensive suite of services.

The company stated that this transaction is expected to be completed during the quarter ending September 30, 2019 and is subject to customary closing conditions. Wipro provides innovative solutions to banks by leveraging the company's Artificial Intelligence platform, Wipro HOLMES. The company expects that the strategic engagement with ICICI Bank will further strengthen endeavor to provide differentiated technology and digital capabilities to the financial services industry.

Currently, Mumbai-based IT services provider Vara lnfotech provides these services to ICICI Bank. Revenue generated by this business was Rs. 221.5 crores in the last financial year (FY19).

As a part of this 7-year engagement with ICICI Bank, Wipro will absorb about 3,800 employees of Vara Infotech along with its existing contracts, facilities and assets, on a going concern basis, through a business transfer agreement for an all cash consideration of Rs. 321 crores and will provide these services to ICICI Bank from September 2019.

Wipro, a leading information technology, consulting and business process services company, has a considerable presence as an IT services provider in the global banking and financial services sector.

Shares of Wipro opened at Rs. 259.20 on BSE as compared to the previous close of Rs. 256.10. The stock has hit an intraday high of Rs. 259.25 and intraday low of Rs. 255.70. At 1032 hours, the stock is trading at Rs. 257.95, up by Rs. 1.85 or 0.72 per cent on BSE.