Wipro to split shares at 1:5, announces 15%

By : |July 30, 1999 0

Bangalore-based Software major Wipro Ltd. has announced
that it would go for stock split of five shares for every one held, while declaring 15 per
cent dividend. The company has posted a revenue growth of 27 per cent during the quarter
ending June 1999.

The company has said that the stock split would result in
the face value of each share reducing from Rs 10 to Rs 2, proving more floating stocks in
the market. The company has also offered its employees the option of picking up shares at
a face value of Rs 2 each during one year to five year period, failing which the offer
would stand lapsed.

To meet the employee stock option plan (ESOP) for five
million equity shares, the authorized share capital of the company will be increased from
current Rs 71 crore to Rs 72 crore to create five million shares for the ESOP, a company
release said. Employees will be offered the stocks at the prevailing market rate.

Meanwhile, announcing the results for the quarter ended
June 1999, the company said that sales and other income moved up by 27 per cent to Rs
425.9 crore over the corresponding quarter of 1998-99. Profit after tax at Rs 48 crore is
up by 87 per cent.

Wipro’s software and services business grew its sales and
other income by 51 per cent in the quarter to Rs 200.8 crore. Profit before interest and
tax was at Rs 50.1 crore, a growth of 22 per cent over the corresponding quarter of
previous year.

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