Karnataka HC okays Wipro's demerger plan; stock down

Wipro gained more than one percent in early trade on Friday after Karnataka High Court approved the demerger plan of the company, but the stock could not sustain its early gains.

At 09:49 hours IST, shares declined 0.64 percent to Rs 431.35 on Bombay Stock Exchange.

In a release sent to exchanges, Wipro said the "High Court of Karnataka has approved the Scheme of Arrangement for demerger of 'diversified business' of Wipro as provided in the Scheme".

Last year in December, the country's largest software firm Wipro had said its shareholders have approved the scheme of arrangement between Wipro (demerged company), Azim Premji Custodial Services Pvt Ltd (resulting company) and Wipro Trademarks Holding Ltd (trademark company).

The company 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 will continue to remain a publicly listed company focusing exclusively on IT.

(With inputs from PTI)