Wipro splits its non-IT units, sets up Wipro Enterprises

Wipro segregates its non-IT business units to focus exclusively on information technology. It demergers Wipro Consumer Care & Lighting (including Furniture business), Wipro Infrastructure Engineering (Hydraulics & Water businesses), and Medical Diagnostic Product & Services business into a separate entity 'Wipro Enterprises'.

The demerger would be complete in the next fiscal, 2013-14. A special committee of independent directors - N. Vaghul, Bill Owens and M. K. Sharma will oversee the planning and execution of the demerger plan.

Azim Premji will remain Executive Chairman of the Board of Wipro Limited and will assume the position of Non-Executive Chairman of Wipro Enterprises Limited. “I am confident that the demerger will enhance value for our shareholders, and provide fresh momentum for growth. Each of our distinct businesses is best of breed in its respective industry, and we are committed to both the businesses,” said Azim Premji, Chairman, Wipro.

“Creating a technology-focused company will allow us to better serve the needs of our customers, and accelerate investments necessary to capitalize on market growth opportunities” said TK Kurien, CEO, IT Business and Executive Director, Wipro.

“The businesses of Wipro Enterprises are diverse, and this demerger gives them an opportunity to pursue their independent growth plans. I believe the demerger scheme reflects a high standard of governance, transparency and fairness for all stakeholders”, said Suresh Senapaty, CFO and Executive Director, Wipro.

Resident Indian shareholders of Wipro will have three options under the proposed restructuring scheme — receive one equity share with face value of Rs.10 in Wipro Enterprises for every five equity shares with face value of Rs.2 each in Wipro that they hold; receive one 7% redeemable preference share in Wipro Enterprises, with face value of Rs.50, for every five equity shares of Wipro that they hold; or exchange the equity shares of Wipro Enterprises and receive as consideration equity shares of Wipro held by the promoter, said a statement.. The exchange ratio will be 1 equity share in Wipro Limited for every 1.65 equity shares in Wipro Enterprises. Each Redeemable Preference Share would have a maturity of 12 months and it would be redeemed at a value of Rs.235.20, added the statement.