Wipro on Friday said one of its promoters, Azim Premji Trust, has sold 2.66 crore shares of the company in a block deal on the Bombay Stock Exchange (BSE).
Azim Premji Trust, is part of the promoter group that held 3,36,19,97,805 shares amounting to 74.30 per cent stake in the company as of the quarter ended December 31, 2018.
On March 7, Azim Premji Trust had sought pre-clearance for selling equity shares of the company and was granted permission for the aforesaid proposal on the very same day, Wipro said in a regulatory filing.
Pre-clearance for selling equity shares of the company is required under the company’s code of conduct and Securities and Exchange Board of India (SEBI) regulations.
“On March 8, 2019, the company has been informed that Azim Premji Trust has sold 2,66,66,667 equity shares of the company on BSE,” the filing added.
The Bengaluru-based company said it will make necessary disclosures to stock exchanges as required under the SEBI Insider Trading Regulations within the prescribed timelines.
It also highlighted that the said sale is an independent transaction undertaken by Azim Premji Trust and that the company is not a party to any negotiations regarding the same.
Reports had suggested that Azim Premji Trust, which is the philanthropic arm of the IT major, was looking at selling up to 2.7 crore shares of Wipro for about Rs 720 crore.
These reports said the entity was looking to sell between 1.8-2.7 crore shares at a price band of Rs 255.40 to Rs 260.78 through block deals on the stock exchanges.
Wipro shares drop nearly 5 per cent
Shares of Wipro on Friday fell nearly five per cent after the company said that one of its promoters, Azim Premji Trust, sold 2.66 crore shares in a block deal on the Bombay Stock Exchange (BSE).
The scrip declined 4.58 per cent to close at Rs 256.50 on the BSE. During the day, it dropped 4.91 per cent to Rs 255.60.
At the National Stock Exchange (NSE), shares plunged 4.18 per cent to close at Rs 257.60 apiece.
On the traded volume front, 466.21 lakh shares were traded on the BSE and over 2 crore shares on the NSE during the day.