Premji’s trusts to get a fill-up from Wipro’s ₹11,000-cr share buyback
Billionaire Azim Premji’s two philanthropic arms, Azim Premji Philanthropic Initiatives Pvt. Ltd (APPI) and Azim Premji Trust (APT), stand to receive at least ₹5,000 crore from Wipro Ltd’s proposed ₹11,000crore share buyback.
Both APPI and APT have additionally sought approval from market regulator Securities and Exchange Board of India (Sebi) to sell more shares than other promoters back to the Bengalurubased IT company.
“In order to augment more funds for advancing their philanthropic objectives, APPI and APT wish to maximise the acceptance of the Equity Shares held by them in the Buyback against the entitlement available to the Promoter Group,” Wipro said in a filing dated 28 July to BSE Ltd.
“In this regard, it is proposed that in addition to the Equity Shares tendered by APPI and APT in the Buyback as part of their entitlement, APPI and APT will also tender additional Equity Shares beyond their entitlement.”
Executives familiar with the buyback process said the two trusts will receive at least ₹5,000 crore although the two charity arms could get more money, depending on the shares eventually offered by individuals and entities of the promoter group.
“In our previous buyback, APPI and APT, the philanthropic arms of the promoter group, participated in the buyback post the approval of Sebi on behalf of the entire promoter group. They have made a similar request for the current buyback and further course of action will be determined by the decision of Sebi,” said a spokesperson for Wipro.
Last year, in June, both APPI and APT got ₹1,963 crore from Wipro’s ₹2,500 crore share repurchase.
Premji and family, through eight promoter groups, own 56.37% of Wipro’s shares while APPI and APT own 16.81%, bringing the total holding of the promoter group in India’s third largest IT firm to 73.18%. Wipro ended the last financial year with $7.7 billion in revenue.
Current rules governing share buybacks mandate proportionate participation by every entity of the promoter group, unless otherwise approved by Sebi.