Wipro today announced allotment of 18,819 shares, worth about Rs 1 crore at the current market price, to eligible employees.
The shares are being issued to the employees under the restricted stock unit plans of 2005 and 2007, the company said.
“Administrative Committee of Board of Directors has passed a resolution in their meeting held on April 20, 2015 to issue and allot 18,819 equity shares of Rs 2 each pursuant to exercise of the stock options by the eligible employees under Restricted Stock Unit Plan 2005 and Restricted Stock Unit Plan 2007,” the company said in a filing on the BSE.
Besides, the Committee also passed a resolution to issue and allot 7,813 equity shares of par value of Rs 2 to JP Morgan Chase Bank, its depository as underlying shares in respect of ADRs (American Depositary Receipts) to be issued and allocated to the purchasers, pursuant to the exercise of the stock options granted to the employees under the ADS Restricted Stock Unit Plan- 2004.
The country’s third largest software services firm Wipro yesterday reported 2.1 per cent rise in fourth quarter net profit to Rs 2,286.5 crore, while it elevated founder Azim Premji’s son Rishad to the board.
The company had a net profit of Rs 2,239.1 crore in the quarter ended March 31, 2014.
Restricted stock is considered less riskier than stock options and it does not depend only upon the market to give it a boost. It is a component of the employees’ compensation.
It also brings greater predictability on the expenses front compared to stock option for a company.
Post the announcement, Wipro’s scrip was trading at Rs 554.55, down 4.19 per cent on the BSE.
Wipro shares down 4.5 per cent post Q4 results
Shares of IT major Wipro Ltd today fell by 4.5 per cent after the company’s March quarter earnings failed to enthuse investors.
The stock made a weak opening and further lost 4.51 per cent to Rs 552.65 at the BSE.
On the NSE, it was down 4.5 per cent to Rs 552.10.
The stock was the top loser among the bluechip Sensex and Nifty scrips.
“While Q3 FY’15 had seen strong performance, Q4 FY’15 disappointed owing to weakness in the energy vertical,” Edelweiss Financial Services said in a report.
Wipro Ltd had yesterday elevated its Chairman Azim Premji’s son Rishad to the company Board in an apparent succession planning on a day it reported 2.1 per cent increase in March quarter profits.
The country’s third-largest software services firm posted a net profit of Rs 2,286.5 crore in January-March 2015 quarter, 2.1 per cent higher than Rs 2,239.1 crore a year ago.
Revenues from IT services business increased six per cent year-on-year to Rs 11,240 crore (up 3.2 per cent to USD 1.77 billion) in the reported quarter.
However, the company has forecast its IT services revenues for the April-June 2015 period to be in the range of USD 1.76 billion to USD 1.79 billion.
This is lower by 0.5 per cent to a growth of one per cent from the earnings of January-March 2015 quarter.