CHENNAI: Wipro shares are in the spotlight on Friday after the company announced it will acquire Harman’s Digital Transformation Solutions (DTS) business for $375 million. The deal is aimed at strengthening Wipro’s engineering research and development and digital engineering services.
The acquisition will add more than 5,600 DTS employees across Asia, Europe and the Americas to Wipro’s global engineering unit. The integration is expected to be completed by the end of this year, subject to regulatory approvals.
Market analysts view the move as a long-term positive for Wipro. Some brokerages expect the acquisition to add to Wipro’s revenue growth and broaden its client base in areas like aerospace, healthcare, industrials and consumer products. However, others remain cautious, noting that integration costs could put pressure on margins in the near term.
A senior industry analyst from Nomura sees the deal contributing significantly to revenue over the next two years and has raised the brokerage's target price on Wipro. Another foreign brokerage Morgan Stanley, on the other hand, has maintained an “equal weight” rating, pointing out possible margin pressures despite stronger revenues. HSBC has also kept a “hold” rating, citing uncertainties around Wipro’s leadership changes and near-term client weakness in Europe.
On the market front, Wipro’s stock traded actively after the announcement. The share is currently around ₹249, down about 19 percent over the past six months and 5 percent over the past year. Its 52-week high is Rs 324.55 and the low is Rs 225.05.
The acquisition highlights Wipro’s push to become a stronger player in AI-powered digital engineering and embedded software services. If successfully integrated, the DTS business could give Wipro a larger role in global digital transformation projects. While the short-term impact on earnings may be limited, investors see this as a step that could support the company’s growth over the longer run.