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Wipro ADR/GDR issue cleared

Our Bureau

NEW DELHI, Sept. 6

THE Government has cleared the proposal put up by infotech major, Wipro Ltd, to issue American Depository Receipts/ Global Depository Receipts (ADRs/GDRs) aggregating $ 500 millions (including a greenshoe option).

Wipro has fixed a ceiling of two per cent of its total issued equity capital as the limit for the ADR/GDR issue. This implies that while the issue size could aggregate $ 500 millions, the number of underlying shares for the issue cannot exceed two per c ent of the company's total equity capital.

Wipro's proposed overseas issue was cleared by the Cabinet Committee on Economic Affairs (CCEA), which met on Wednesday, a Government spokesperson told newspersons here.

The company had earlier secured the approval of the Foreign Investment Promotion Board (FIPB) for the same issue. In addition, Wipro also proposes to issue an ADR/GDR-linked employee stock option plan (ESOP) up to a maximum of $ 150 millions.

Under the proposal, the total non-resident holding, including the ESOP, in the company shall not exceed 10 per cent of the issued and paid-up capital of the company after the ADR/GDR float.