Wipro gets SEBI nod on public shareholding requirement

BANGALORE: Software exporter Wipro here on Thursday said market regulatorSEBI 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. The trust will have trustees either from public sector banks or public financial institutions for advancing philanthropic activities through its beneficiaries.
The irrevocable independent trust shall be categorized as public shareholding to comply with the minimum public float of 25% specified under the Securities Contract (Regulation) Rules, 1957 and clause 40A of the Listing Agreement.
The company has taken several steps to fulfill the minimum shareholding requirement including an offer for sale (OFS) transaction where promoters approach the market to dilute their holding in the company to meet the regulatory mandate. The demerger of the 'diversified' business is also expected to increase public shareholding. "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," said a company communique.