Wipro Shares Rise After $375 Million Deal to Acquire Olam’s IT Business

April 6 — Shares of Wipro rose on Monday after the company announced it would acquire the IT services business of Singapore-based Olam Group in a deal valued at $375 million.

The acquisition involves buying 200 million shares of Mindsprint, the IT and digital services arm of Olam, through Wipro Networks, a subsidiary of Wipro. Following the announcement, Wipro’s stock rose by as much as 3.2% during trading and was among the top gainers on the IT index.

Mindsprint provides technology, cybersecurity, and digital transformation services across several industries, including food and agribusiness, manufacturing, retail, consumer goods, healthcare, and life sciences. Analysts believe the acquisition will strengthen Wipro’s consulting capabilities, platform services, and industry-specific expertise, particularly in the food and agribusiness sector.

Market analysts say this is Wipro’s largest acquisition so far and is expected to improve the company’s revenue visibility. The deal also includes a major long-term agreement, under which Olam has signed an eight-year services contract with Wipro, committing to spend about $100 million annually. The total contract value is expected to exceed $1 billion over the contract period.

Experts say the agreement is more strategic than traditional outsourcing deals because it includes domain expertise, intellectual property platforms, and a long-term delivery partnership, making the relationship more stable and long-term.

Despite the positive news, Wipro’s shares are still down about 24.5% so far this year, compared to a 19.2% decline in the broader IT index, reflecting the challenging environment currently faced by the IT services sector.

The deal shows that Indian IT companies are increasingly focusing on acquisitions and long-term contracts to secure stable revenue and expand into industry-specific digital services as global technology spending remains uncertain.