Wipro Can't Contest Direct WB Contracts Till 2011

by CXOtoday Staff    Jan 12, 2009

In connection with revised disclosure policies, in June 2007, the World Bank asked Wipro to stop contesting direct contracts till 2011.

Wipro Technologies, the global IT services business of Wipro Limited today made the announcement in a communique submitted to the Bombay Stock Exchange.

In 2000, in connection with its Initial Public Offering (IPO) of American Depository Shares (ADS) in the United States, Wipro offered a commonly utilized and Securities and Exchange Commission approved Directed Share Program (DSP) that allowed employees and clients to purchase ADSs at the IPO market price.

The programme’s objective was to involve employees and customers with the public offering to expand our recognition and brand. A majority of the shares sold under the DSP were allotted to our employees, the communique said.

It said, “Pursuant to this program, Wipro representatives offered the World Bank, through its chief information officer (CIO) and a senior staff, participation in the programm and they directed this offer to members of their family and friends. The aggregate number of shares purchased by them was 1,750 for approximately $72,000 at the IPO price. All participants in the programme signed a conflict of interest statement that their purchase did not violate any ethics or conflict of interest policies of their company.”

“To date, Wipro’s revenue from World Bank is insignificant. Our inability to get future business from World Bank will not adversely affect our business and results of operations,” the company said.