Wipro staff to get shares worth over Rs 1 crore

New Delhi, Apr 22: IT major Wipro on Wednesday announced allotment of 18,819 shares, worth about Rs one 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.

PTI