Non-core biz transfer: Wipro told to hold shareholders’ meeting

The Karnataka High Court today directed Wipro Ltd to hold shareholders’ meeting to mull the transfer of its non-core businesses to Azim Premji Custodial Services. This meeting will be held on December 28. In November, Wipro had announced that the soaps-to-software major will de-merge its consumer care and lighting, medical diagnostic products and services and infrastructure engineering into a separate company called Wipro Enterprises Ltd. This, according to Wipro is aimed at making it a pure play IT company. At the time of the announcement, CEO of IT business and executive Director T.K. Kurien had said that creating a technology focused company will allow us it to better serve customer needs and accelerate investments necessary to capitalise on market growth opportunities.

Also, it will enable stakeholders to unlock value of the diversified businesses, according to a Wipro statement. In 2011-12, the IT business contributed 86 per cent of revenues and 94 per cent of operating profit to Wipro Ltd.

However, the company maintained that there will be no impact of the management structure post the demerger and no change in leadership and the Wipro brand will be jointly owned by both the companies. Also, the privately held Azim Premji Custodial Services is in the process of converting itself into a public limited company that will be renamed as Wipro Enterprises Ltd. Shares of Wipro Ltd ended down marginally by 0.86 per cent at Rs 378.80 on the NSE.