Wipro drops 10% after demerger of non IT-business

Stocks

oi-Sneha

By Sneha B K

Published: Tuesday, April 9, 2013, 10:46 [IST]

Shares of the Wipro dropped more than 10% after the company demerged its non-IT businesses into separate unlisted company.

The Scheme of Arrangement for the demerger of ‘Diversified Business' of the company was approved by the Board of Directors on November 1, 2012which was effective from March 31, 2013

Wipro Limited will remain a publicly listed company that will focus exclusively on information technology. Wipro Enterprises Limited will be an unlisted company.

Wipro further announced that April 11, 2013 has been fixed as the record date for the purpose of determining the members of the Company to whom Securities of the Resulting Company will be allotted and who will be entitled to the Exchange Right pursuant to the Scheme of Arrangement.

Wipro Limited has approved the demerger of the Wipro Consumer Care & Lighting (including Furniturebusiness), Wipro Infrastructure Engineering (Hydraulics & Water businesses), and Medical Diagnostic Product & Services business (through its strategic joint venture), into a separate company to be named Wipro Enterprises Limited.

Shares of the company were seen trading at Rs 400.90 lower by 10.60% on BSE at 10.40 am IST. The stock touched an intra-day low of Rs 397.

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