)
India's third largest IT services company Wipro Limited on Thursday said that Sebi has approved its 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 either from public sector banks or public financial institutions for advancing philanthropic activities through its beneficiaries.
In a filing to the BSE, the Bangalore-based company said, “The Irrevocable Independent Trust shall be categorized as ‘public shareholding’ for the purpose of the minimum public shareholding criteria of 25 per cent specified 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 (OFS). The demerger of the ‘diversified’ business is also expected to increase public shareholding, Azim Premji promoted company said.
“Any shortfall to meet public shareholding prior to due date of meeting the minimum public shareholding requirement would be transferred to the ‘Irrevocable Independent Trust’ and the Trust shall effect a sale of such equity shares forming part of the trust funds within a period of two years from the date of such settlement,” the filing added.
