Wipro Ltd has said that it expects margins for its IT business improving once the demerger of its other businesses take place.
The company also said that there are no plans to take the new company, Wipro Enterprises for a listing “at any point of time.”
Wipro’s Chief Financial Officer, Suresh Senapaty, told newspersons during a concall on Thursday that if the minority shareholders opt to keep their shares in Wipro Enterprises, then they will do so in an unlisted entity. “This factor must be kept in mind by minority shareholders when they exercise their option,” Senapaty said.
The news of the demerger had a positive impact on Wipro shares with the stock rising to Rs 363.95, up 3.75 per cent by afternoon.
Senapaty said once the demerger takes place and if all the shareholders decide to opt for Wipro Ltd, the promoters’ shareholding in that company will fall by 2.7 per cent.
The existing gap of 4.6 per cent will be taken care of by the required date for diluting promoters’ shareholding to 75 per cent as per the regulator SEBI’s requirements, Senapaty said.
Wipro Enterprises has been valued between Rs 10,000 crore and Rs 11,000 crore though Wipro officials did not confirm it.
The independent director for the special committee to oversee the demerger, N. Vaghul, said the decision to hive off non-IT business was taken because it had reached a critical mass.
The non-IT business of Wipro Ltd currently has a debt of Rs 200 crore. Each of the businesses in the new company, Wipro Enterprises will retain their existing CEOs.