Wipro's Demerger Scheme Got Effective From March 31
Bangalore: Wipro on Monday declared that its scheme to demerge its non-IT business into separate unlisted company called Wipro Enterprises was placed into effect from March 31.
The demerger scheme was approved by the Wipro board of directors on November 1 last year. It is aimed at creating a separate company out of Wipro’s consumer care, lighting, furniture, hydraulics, water and medical diagnostic product businesses. By this demerger Wipro can focus exclusively on its IT sector, according to a report from Times Of India.
In December last year, Wipro also added that its shareholders have approved the scheme of arrangement between Wipro (demerged company), Azim Premji Custodial Services (resulting company) and Wipro Trademarks Holding (trademark company).
On March 21, 2013, Wipro said that the High Court of Karnataka has approved the scheme of arrangement for demerger of ‘Diversified Business’ of Wipro Limited as provided in the Scheme.
April 11 has been fixed as the record date for the purpose of determining the members of the company to whom securities of the resulting company will be allotted and who will be entitled to the 'exchange right'. It is likely to take about six weeks from the record date for the whole process to be completed, Wipro said.
Wipro is trading higher by 3.4 percent at Rs 445 after the company broke the news about implementing the above mentioned demerger scheme.