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Azim Premji Trust has sold 2.66 crore shares of Wipro in a block deal.
India’s third-largest software exporter sold 2.66 crore shares or 0.44 per cent of the share capital of Wipro, the software major said in a filing to the exchanges. Azim Premji Trust is part of the promoter group that held 336.19 crore shares amounting to 74.30 per cent stake in the company as of the quarter ended December 31, 2018.
Pre-clearance move
On March 7, Azim Premji Trust had sought pre-clearance for selling equity shares of the company and was granted permission for the proposal on the same day, the filing added. Securities and Exchange Board of India (SEBI) regulations mandate pre-clearance from companies for selling their equity shares.
According to bulk deal data with the Bombay Stock Exchange (BSE), Wipro sold these shares at an average price of ₹256.58 a share. This translates into a deal size of about ₹682 crore. However, the identity of buyer/s is not known immediately.
This development also needs to be seen in the backdrop of Wipro seeking a nod from SEBI to make a third consecutive buyback offer. Wipro had to get SEBI’s nod as it is in the middle of a scheme of amalgamation of its four-wholly owned subsidiaries with itself. SEBI rules mandate that firms cannot go for a buyback offer when an amalgamation is pending. Currently, the scheme is pending approval at the National Company Law Tribunal (NCLT). Wipro sought a waiver as there is a backlog of cases at NCLT.
In a statement to the exchanges, Wipro added that it will make necessary disclosures to the stock exchanges as required under the SEBI Insider Trading Regulations, within the prescribed timelines. Wipro also clarified that the sale of shares is an independent transaction undertaken by the Azim Premji Trust. Azim Premji Trust, along with other promoter entities, has sold its 2.73 per cent stake in Wipro for more than ₹5,700 crore in the recently-concluded buyback offer.
Shares of Wipro closed at ₹256.5, down 4.58 per cent, on the BSE
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