IT giant Wipro said it will demerge three non-IT business divisions, including consumer products segment, into a privately-held company to be named Wipro Enterprises Ltd.
The new unlisted firm will include Wipro Consumer Care & Lighting (including furniture business), Wipro Infrastructure Engineering (hydraulics and water businesses) and Medical Diagnostic Product & Services business, Wipro said in a filing to the BSE.
Following the move, shares of the IT major surged nearly 7 percent to Rs. 375 on the BSE in the morning trade.
Wipro Ltd will remain a publicly listed company that will focus exclusively on information technology, while Wipro Enterprises will be an unlisted company, the filing said.
The Board of Wipro Ltd will remain unchanged and the demerger will have no impact on the management structure of the IT major, it added.
There will be no change in the leadership of any of Wipro Enterprises' constituent businesses as well and Wipro brand will be jointly owned by both the companies, it said.