A trust controlled by Wipro's billionaire founder Azim Premji fell short of its target to sell up to 35 million shares, or a 1.4% stake, of the Indian company, clouding the outlook for the newly approved stock auction process.
Wipro, the country's third largest software services exporter, is the first private company to use the share auction route that was aimed at avoiding expensive roadshows and saving time.
The share sale came two weeks after state-run ONGC's chaotic $2.6 billion offering fell short of the government's target to sell a 5% stake in the company as part of its divestment programme.
Wipro share sale got bids for 24.8 million shares, or was covered 71%, at the close of the auction at 1:30 p.m., stock exchange data showed. The auction process was launched at 9:15 a.m. on Wednesday.
Details of the price at which the Wipro shares will be allotted to successful bidders were not immediately available. About 25 million of its shares are worth Rs10.7 billion at the stock's Tuesday close of 430.95 rupees.
Proceeds from the Wipro share sale will be used to finance the education activities of the Azim Premji Foundation, a non-profit unit set up by the founder to improve the quality of education in the country.
As part of the auction process, Wipro said on Monday a floor price for the bidding would be given to the exchanges before the opening of the sale on Wednesday. The floor price will be disclosed after the stock market close at 3:30 p.m.
The stock exchange will consider the bids after the closure of the auction and any bid below a floor price would not be considered for allocation, the company statement said.
In January, India's market regulator gave permission to shareholders of the country's top 100 companies by market value to raise funds by auctioning their stakes via stock exchanges.
Citigroup Inc, Morgan Stanley, UBS and Credit Suisse have been hired by Wipro as brokers for the share auction process.
....more info
Wipro, the country's third largest software services exporter, is the first private company to use the share auction route that was aimed at avoiding expensive roadshows and saving time.
The share sale came two weeks after state-run ONGC's chaotic $2.6 billion offering fell short of the government's target to sell a 5% stake in the company as part of its divestment programme.
Wipro share sale got bids for 24.8 million shares, or was covered 71%, at the close of the auction at 1:30 p.m., stock exchange data showed. The auction process was launched at 9:15 a.m. on Wednesday.
Details of the price at which the Wipro shares will be allotted to successful bidders were not immediately available. About 25 million of its shares are worth Rs10.7 billion at the stock's Tuesday close of 430.95 rupees.
Proceeds from the Wipro share sale will be used to finance the education activities of the Azim Premji Foundation, a non-profit unit set up by the founder to improve the quality of education in the country.
As part of the auction process, Wipro said on Monday a floor price for the bidding would be given to the exchanges before the opening of the sale on Wednesday. The floor price will be disclosed after the stock market close at 3:30 p.m.
The stock exchange will consider the bids after the closure of the auction and any bid below a floor price would not be considered for allocation, the company statement said.
In January, India's market regulator gave permission to shareholders of the country's top 100 companies by market value to raise funds by auctioning their stakes via stock exchanges.
Citigroup Inc, Morgan Stanley, UBS and Credit Suisse have been hired by Wipro as brokers for the share auction process.
....more info