The Telegraph
Tuesday , January 1 , 2013
Since 1st March, 1999
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Seal on Wipro demerger

Mumbai, Dec. 31: Wipro today said its shareholders had approved the company’s plan to hive off its non-IT business into an unlisted arm.

“The shareholders at the court convened meeting held on December 28, have approved the scheme of arrangement between Wipro Ltd (demerged company), Azim Premji Custodial Services Pvt Ltd (resulting company) and Wipro Trademarks Holding Ltd (trademark company),” the company informed the stock exchanges today.

The announcement led to the Wipro scrip rising 0.79 per cent, or Rs 3.10, to Rs 394.35 on the BSE.

Last month, Wipro had announced that it would demerge its non-IT businesses such as consumer care and lighting into a new company.

The unlisted firm, to be called Wipro Enterprises, will include Wipro Consumer Care & Lighting (including the furniture business), Wipro Infrastructure Engineering (hydraulics and water businesses) and medical diagnostic product and services business.

Wipro will issue shares of the unlisted company to its minority shareholders. Its resident Indian shareholders have been given multiple options. They can either opt for one equity share of the new entity for every five shares of Wipro or one 7 per cent redeemable preference share of Wipro Enterprises for every five shares of Wipro.

Each preference share will have a maturity of 12 months and can be redeemed at a value of Rs 235.20.