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Wipro Ltd.: The Demerger of Wipro Enterprises
Haldipur R., Narapareddy V.,
Published in World Scientific Publishing Co. Pte Ltd
2017
Volume: 21
   
Issue: 2
Pages: 347 - 375
Abstract
In November 2012, Wipro Ltd., a NYSE listed IT Services company, announced its plan to demerge the non-IT businesses into an unlisted entity - Wipro Enterprises. The case highlights the governance, valuation, and ethical issues surrounding the demerger. Shareholders were given three options to choose from. But, in reality, they had no choice but to exchange Wipro Enterprises shares that they would receive after the demerger with Wipro Ltd shares because Wipro Enterprises would remain unlisted. The case asks the student to analyze the restructuring from an investor's perspective. The case is especially interesting in that it provides a platform to discuss governance issues in the context of a familyowned public firm. It demonstrates how the preferences of majority shareholders can affect the wealth of minority shareholders. © 2017 World Scientific Publishing Company.
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Published in World Scientific Publishing Co. Pte Ltd
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