Wipro Staff To Get Shares Worth Over 1Crore

MUMBAI/NEW DELHI: Wipro announced allotment of 18,819 shares, worth about 1 crore at the current market price, to eligible employees. The shares are being issued to the employees under the restricted stock unit plans of 2005 and 2007, the company said.

“Administrative Committee of Board of Directors has passed a resolution in their meeting held on April 20, 2015 to issue and allot 18,819 equity shares of 2 each pursuant to exercise of the stock options by the eligible employees under Restricted Stock Unit Plan 2005 and Restricted Stock Unit Plan2007,” the company said in a filing on the BSE.

Besides, the Committee also passed a resolution to issue and allot 7,813 equity shares of par value of 2 to JP Morgan Chase Bank, its depository as underlying shares in respect of ADRs (American Depositary Receipts) to be issued and allocated to the purchasers, pursuant to the exercise of the stockoptions granted to the employees under the ADS Restricted Stock Unit Plan- 2004.

The country’s third largest software services firm Wipro yesterday reported 2.1 per cent rise in fourth quarter net profit to 2,286.5 crore, while it elevated founder Azim Premji’s son Rishad to the board.

The company had a net profit of 2,239.1 crore in the quarter ended March 31, 2014.

Restricted stock is considered less riskier than stock options and it does not depend only upon the market to give it a boost. It is a component of the employees’ compensation.

It also brings greater predictability on the expenses front compared to stockoption for a company.

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