Advertisement

HindustanTimes Fri,01 Aug 2014

Will sell small stake to meet Sebi norm if it's needed: Azim Premji

PTI  Bangalore, January 18, 2013
First Published: 16:40 IST(18/1/2013) | Last Updated: 18:22 IST(18/1/2013)

Wipro Ltd will sell a small stake if it is not able to bring down the promoter holding in the company to 75% even after the completion of demerger process and certain other steps being taken to meet regulatory norms, its Chairman Azim Premji said on Friday.

Advertisement

On Wipro's strategy to bring down the promoter stake as per market regulator Sebi's mandate, Premji also said it will depend on the eventual interpretation of the guidelines.

Under Sebi norms, privately promoted companies are expect to have a public shareholding at 25% by June 2013, while the same for the state-run listed companies has been relaxed to 10%, which has to be met by August 2013.

According to the mandate, Premji has to reduce the promoter stake in the company to 75% by June this year. As on December 31, 2012 promoter and promoter group shareholding in Wipro stood at 78.29%.

If Sebi's interpretation is the same as Wipro has positioned in its application, then it would bring it down to 75% after taking into account demerger component and "certain other steps that we are taking", Premji said.

It that does not happen, he added: "We will sell a small stake; it will not be large."

Besides, the BSE and the NSE, the company is listed on the New York Stock exchange.

The company has proposed including the ADR as part of public float because "ADR is quoted, so its part of public float", Premji said.

The Bangalore-based company is confident that Sebi would be "sympathetic" towards "some of the interpretations suggested (by Wipro)", he added.

The company's Chief Financial Officer Suresh Senapaty said the demerger process is expected to be completed in the next four-five months.


Advertisement
more from Business

Argentine markets fall post-default, NY hearing on Friday

Argentina's bond and stock markets and peso currency dropped on Thursday after Latin America's No. 3 economy defaulted for the second time in 12 years following the collapse of last-ditch talks with holdout creditors.
markets
Advertisement
Most Popular
Advertisement
Advertisement
Copyright © 2014 HT Media Limited. All Rights Reserved