SEBI okays Wipro proposal to meet public shareholding norms
Bangalore: IT major Wipro on Thursday said it has received SEBI approval for meeting minimum public shareholding norms by transferring shares to an independent trust.
The Bangalore-based software services firm added that the 'Irrevocable Independent Trust' will include trustees either from public sector banks or public financial institutions for advancing philanthropic activities.
Wipro in a statement said: "SEBI has approved its proposal to meet the minimum public shareholding requirement through a transfer of equity shares by the promoter group to an 'Irrevocable Independent Trust' with Trustees either from public sector banks or public financial institutions for advancing philanthropic activities through its beneficiaries."
The 'Irrevocable Independent Trust' shall be categorised as 'public shareholding' for the purpose of the minimum public shareholding criteria of 25 percent specified under the Securities Contract (Regulation) Rules, 1957 and clause 40A of the Listing Agreement, it added.
As on March 31, 2013, promoter group of Wipro held 78.28 percent stake in the company, according to BSE data.
Wipro and the promoter group have undertaken multiple steps to fulfil the minimum public shareholding requirement including Offer for Sale (OFS).
"The demerger of the 'diversified' business is also expected to increase public shareholding and any shortfall in meeting public shareholding prior to due date of meeting the minimum public shareholding requirement would be transferred to the 'Irrevocable Independent Trust'.
"The Trust shall effect a sale of such equity shares forming part of the trust funds within a period of two years from the date of such settlement," Wipro said.
JM Financial acted as the advisor in this matter, it added.
According to SEBI rules, listed private companies will have to increase public shareholding to a minimum of 25 percent by June 2013.