Information technology major Wipro will be dropped from the National Stock Exchange's (NSE) benchmark index Nifty from April 1 as its non-IT businesses are hived off into a separate unit .
India Index Services and Products, an NSE-Crisil joint venture that maintains Nifty index, had on Wednesday said Wipro and Siemens would be replaced by IndusInd Bank and state-run NMDC on the 50-share benchmark index with effect from April 1, 2013.
"A corporate action like our demerger of a listed company would generally result in a short-term withdrawal of the scrip from the index as it has been happening in the past where such corporate action had been initiated. We expect restoration of the same on completion of the corporate action, which we expect to conclude in the next few months," Bangalore-based Wipro said in a statement.
In November 2012, Wipro's board had approved the demerger of the non-IT businesses - Wipro Consumer Care & Lighting (including furniture business), Wipro Infrastructure Engineering (hydraulics and water businesses) and Medical Diagnostic Product & Services business - into a privately-held company, to be named Wipro Enterprises Ltd.
The company believes the demerger will help in simplification , clarity in the minds of customers, target companies, investors and analysts. While Wipro would continue to remain a publicly-listed company focusing exclusively on IT, Wipro Enterprises will be an unlisted company.
Shares of Wipro took a beating on the bourses on Thursday, shedding 2.95 per cent to Rs 397.50 on the Bombay Stock Exchange and 3.16 per cent to Rs 396.50 on the National Stock Exchange.
With inputs from PTI