Wipro Technologies on Monday announced that the World Bank in June 2007 had banned it till 2011 from contesting for its contracts because the company had offered shares to the Bank''s employees during its US IPO in 2000.
Wipro said that it had offered American Depositary Shares in 2000 to employees as well as the clients at the initial public offer price. However, Wipro later extended the participation to World Bank employees and their friends and families, under which they purchased 1,750 ADS.
“The aggregate number of shares purchased by them was 1,750 for about $72,000 at the IPO price. All participants in the program signed a conflict of interest statement that their purchase did not violate any ethics or conflict of interest policies of their company,” the Wipro statement said.
The led the scrips of Wipro to fell more than 13% in BSE to touch an intraday low of Rs220 to close at Rs227.35 as compared to the previous close of Rs250.65.
Wipro said that it had offered American Depositary Shares in 2000 to employees as well as the clients at the initial public offer price. However, Wipro later extended the participation to World Bank employees and their friends and families, under which they purchased 1,750 ADS.
“The aggregate number of shares purchased by them was 1,750 for about $72,000 at the IPO price. All participants in the program signed a conflict of interest statement that their purchase did not violate any ethics or conflict of interest policies of their company,” the Wipro statement said.
The led the scrips of Wipro to fell more than 13% in BSE to touch an intraday low of Rs220 to close at Rs227.35 as compared to the previous close of Rs250.65.
1 comment:
Whatever both parties would say its a loss to Wipro's image.
I have expressed my views on http://controversial-affairs.blogspot.com/2009/01/world-bank-who-cares.html
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