Wipro chairman Azim Premji is open to dilution of his stake in the company from the current 81 per cent through various methods that include an American depository shares (ADS) conversion. However, he would remain at the helm of the affairs at least for the next five years."My stake currently is at 81 per cent, which can come down through various measures like going for an ADS conversion offer to increase our liquidity, donations to the Azim Premji foundations, making an acquisition using its stock and restricted employees stock options," Premji said here, adding the company was very much open to an sponsored ADS but no timeframe can be given.Wipro, which is sitting on a $1 billion cash reserve, does not need cash for its activities. So, a secondary ADS could be treated as an option to divest the stake, he said.On the issue of succession plan, Premji parried any speculation on his immediate step-down saying he would remain at the helm of affairs for the next five years."Under our strict system of succession plan, we always have potential candidates for succession. But I am going to continue my job for the next five years. It is predefined. None of my family members is working with the company. Succession is purely on merit," he said.It may be recalled that vice chairman Vivek Paul resigned in June to become a partner at private investment company Texas Pacific Group, while Raman Roy, chairman of the Wipro contact centre, too quit in the same month.Meanwhile, there is good news for the shareholders - including its chairman - of this NYSE-listed soap-to-software maker. They can expect windfall as Wipro is considering more "generous" dividend payouts than it has given over the last two years, from its approximate $1 billion cash reserves."We have $1 billion dollar in cash reserves. We plan to give more generous dividends to the shareholders than over the past two years but under the broad outline of the company's current dividend policy," Premji said here today.However, the entire reserves would not go towards the payouts as he said part of the reserves would be utilised in funding acquisitions."We are looking at mid-sized companies of $25-100 million companies in the US and Europe, and also domestically. We are interested in acquiring companies with specialised verticals like retail. In certain geographies such as continental Europe," he said.For the year 2004-05, the Wipro board had recommended dividend of Rs 5 a share (250 per cent on par value), despite a bottomline growth that fell short of market expectations.The company had also declared a one-time special dividend of Rs 25 before crossing the billion-dollar revenue mark in addition to the regular dividend.
