BANGALORE, INDIA: In response to the World Bank's decision to ban Wipro from receiving Bank contracts for years, Wipro said the decision will not affect its business results or operations.

“To date, Wipro’s revenue from World Bank is insignificant. Our inability to get future business from World Bank will not adversely affect our business and results of operations,” Wipro said in a statement.

Wipro’s disclosure about the 18-month-old World bank ban came after the World Bank decided to publish names of all companies that it barred from contracts.

According to Wipro, in 2000, in connection with its Initial Public Offering (IPO) of American Depository Shares (ADS) in the United States, it offered a commonly utilized and Securities and Exchange Commission approved Directed Share Program (DSP) that allowed employees and clients to purchase ADSs at the IPO market price.

Wipro said the Program’s objective was to involve employees and customers with the public offering to expand their recognition and brand.

“A majority of the shares sold under the DSP were allotted to our employees. Pursuant to this program, Wipro representatives offered the World Bank, through its Chief Information Officer (CIO), participation in the program and the CIO directed this offer to members of his family and friends,” the Wipro statement said.

The aggregate number of shares purchased by them was 1,750 for approximately $72,000 at the IPO price. At that time, all participants in the program signed a conflict of interest statement that their purchase did not violate any ethics or conflict of interest policies of their company, said Wipro.

Megasoft Limited, a technology company focusing on telecom and IT services sector, which also faces World Bank ban, said there is no material effect on the company due the to the debarment by World bank.

Commenting on the World Bank announcement, GV Kumar, managing director and CEO, Megasoft said “Megasoft has had no business from World Bank since 2004 and hence there is no financial impact on the company due to this announcement.”

He said the World Bank approached Megasoft in 2007 seeking details about Megasoft China Operations and the company gave them all details.

“We had by then even shut down our China operations. They objected to us having a Joint Venture with an ex-employee of the World Bank and chose to debar us on that ground.”

World Bank had said it decided to disclose the name of the companies debarred from receiving direct contracts from the Bank in the interest of fairness and transparency.