Wipro: Balancing M&A and shareholder returns

Wipro, India’s third largest information technology (IT) service provider, has taken an aggressive approach in acquiring companies to step up digital strengths, compared with cross-town rival Infosys, or even Tata Consultancy Services (TCS). 

Since Abidali Neemuchwala became chief executive officer (CEO), the company has made two major acquisitions — HealthPlan Services and Appirio in 2016 —worth nearly $1 billion.

It also announced a buyback worth Rs 2,500 crore in June last year. Analysts say the company has ramped up acquisitions during the past one year and allocated the free cash better through buyback last year. 

But, despite the mergers and