Wipro gets shareholders' nod for demerger, shares up over 1%
Wipro on Monday said its shareholders have approved the company's plans to hive off non-IT business into unlisted arm. Following the announcement, Wipro's shares jumped 1.34% from its previous closed on the BSE to Rs 396.50.business Updated: Dec 31, 2012 15:24 IST
Wipro on Monday said its shareholders have approved the company's plans to hive off non-IT business into unlisted arm.
"The shareholders at the court convened meeting held on December 28, 2012, 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)," it said in a BSE filing.
Following the announcement, Wipro's shares jumped 1.34% from its previous closed on the BSE to Rs 396.50.
A total of 393 shareholders were present at the Extra-ordinary General Meeting, including 18 from promoters and promoter groups, the filing said. The company has about 235,598 number of shareholders.
Wipro, which is the country's third largest software firm, had announced last month that it will demerge its non-IT businesses like Consumer Care & Lighting into a new company to focus exclusively on information technology.
Wipro Ltd will continue to remain a publicly listed company focusing exclusively on IT.
The unlisted firm will be called Wipro Enterprises and include Wipro Consumer Care & Lighting (including furniture business), Wipro Infrastructure Engineering (hydraulics and water businesses) and Medical Diagnostic Product & Services business.
The board of Wipro remains unchanged and the demerger of the non-IT units will have no impact on the company's management structure, Wipro had said.
Wipro is a part of the $100-billion Indian IT industry and competes with the likes of Tata Consultancy Services and Infosys besides global players like IBM and Accenture.
With increased focus on its core business, the company is expected to better compete as the sector is witnessing stiff competition amid flat IT budgets due to economic slowdown.