The rumours of Sanjay Jalona potentially joining IT services leader Wipro as a senior executive sent the company’s shareholders into a tizzy last week. On Friday, December 22nd, Wipro shares soared nearly 7% intraday solely based on market speculation around Jalona’s hiring.
There was lots of buzz in the stock market last week about Wipro possibly hiring their former employee Sanjay Jalona. Jalona used to work at Wipro many years ago before becoming the CEO of another tech company called L&T Infotech.
Apparently just the rumor of Jalona joining Wipro again caused their stock price to jump up almost 7% in one day! While Wipro said this wasn’t actually happening, it’s clear that investors were really excited about the idea.
So why did people react this way? Well, there’s been growing concern about Wipro’s performance lately. The company hasn’t been growing as quickly as competitors and their profits have decreased. At the same time, many experienced leaders have been leaving.
The current CEO Thierry has faced some criticism for these issues. His term ends in a couple years, so shareholders may start pushing for a change sooner if things don’t improve. That’s where Jalona comes in.
During his time at L&T Infotech, Jalona really turned the company around. He helped revenue grow over 6 times from $400 million to $2.5 billion! Profits also increased steadily under his guidance.
Given this track record, investors seem to think Jalona has just what Wipro needs right now. He knows the industry inside and out, with experience growing business and keeping clients happy. Jalona also worked at Wipro early in his career, so he’d understand the company culture.
From a financial perspective, bringing someone as accomplished as Jalona on board – even if just as an advisor for now – could give shareholders more confidence. His expertise in operations, sales, managing talent and more would be extremely valuable as Wipro works to boost its numbers.
While Wipro said the rumors weren’t true, the market reaction said a lot. It shows investors will consider any legitimate strategies that have a good chance of improving results long-term. For a company struggling a bit, Jalona’s leadership may provide the fresh perspective and skills to get Wipro back on the right track. Only time will tell what happens next, but it’s clear his potential involvement has investors very hopeful.
