Wipro shareholders approve demerger
The shareholders of Indian IT giant, Wipro have given their final approval to demerge the company's IT and non It business in order to be able to better manage the operations.
The shareholders of the company met at the company's Electronic City, Campus in Bangalore to discuss and determine the fate of a proposed demerger of the company. About 393 shareholders were present at the extraordinary general meeting on Friday.
The company said in a statement, "We write to inform the stock exchanges that the shareholders at the court convened meeting held on December 28 have approved the scheme of arrangement between Wipro Limited, Azim Premji Custodial Services Private Limited and Wipro Trademarks Holding Limited."
Wipro Ltd had said in November that it is planning to separate its IT and non-IT businesses. As a result of the demerger, Chairman Azim Premji will be able to concentrate better on its prime IT business. He is aiming to reduce the promoter's stake in the company through this demerger.
The company is planning to operate its non-IT businesses under the name, Wipro Enterprises Ltd, which will be an unlisted firm. On the other hand, the IT business will remain within publicly traded Wipro Ltd. The company's IT business accounts for 86 per cent of revenue and 94 per cent of operating profit of the company.