Wipro transfers Premji's shares to trust

IT bellwether Wipro Ltd Thursday secured the regulatory approval to transfer equity shares of its promoter group headed by chairman Azim Premji to an independent trust for meeting the 25 percent public shareholding requirement.

"The Securities Exchange Board of India (SEBI) has approved our 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 from state-run banks or financial institutions for advancing philanthropic activities through its beneficiaries," Wipro said in a statement here.

By transferring the shares held by him and his family members, Premji's holding in the global software major has come down to 75 percent from 80 percent earlier.

The trust shall be categorised as "public shareholding" under the Securities Contract (Regulation) Rules, 1957 and clause 40A of the listing agreement.

Wipro and the promoter group have undertaken multiple steps to fulfill the minimum public shareholding requirement, including offer for sale.

The de-merger of the "diversified" business is also expected to increase public shareholding.

"Any shortfall to meet the public shareholding prior to due date of meeting the minimum requirement will be transferred to the trust, which shall effect a sale of such equity shares forming part of the trust funds within two years from the date of such settlement," the statement said.