Wipro Enterprises is going private and there are no plans to list the company is the clear message coming in from Wipro founder Azim Premji to shareholders at an extra-ordinary general meeting (EGM).
According to Premji the group's consumer business has a different structure and it is best to take it private. Minority shareholders had asked for option to sell out. They had asked Wipro to consider listing Wipro Enterprises. Wipro Enterprises is the unlisted demerged consumer business. Wipro is seeking shareholder nod at EGM to take Wipro Enterprises private.
Premji said minority shareholders will get Rs 367 per share as part of the squeeze out, which is 67 percent more than the price at the time of demerger. Wipro had demerged its consumer business in 2012 and at that point of time had offered shareholders either cash or shares of Wipro Enterprises.
Today, during the EGM some of the shareholders became very emotional and urged management that they still wanted to stay invested in the company. Premji assured them that he will inform the court that those who want to continue holding shares can continue to do so.
Wipro Enterprises today also sought a formal nod from members to reduce share capital from Rs 496 crore to Rs 476 crore. While Wipro promoters already hold over 96 percent, non-promoter shareholders only 3.4 percent. The court will give approval for this reduction in share capital post the EGM.
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