Karnataka High Court approves Wipro's demerger plan
New Delhi: IT major Wipro Thursday said the Karnataka High Court has approved its demerger scheme through which the firm plans to hive off non-IT business.
In a filing to the BSE, Wipro said the "High Court of Karnataka has approved the Scheme of Arrangement for demerger of 'Diversified Business' of Wipro Limited as provided in the Scheme".
Last year in December, Wipro had said its shareholders 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).
Wipro, which is the country's third largest software firm, had announced 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.
It is part of the USD 100-billion Indian IT industry and competes with the likes of Tata Consultancy Services and Infosys besides global players like IBM and Accenture.
Shares of the company Thursday rose by almost 1 percent to settle at Rs 434.15 apiece from its previous close at the BSE.