Wipro Discloses Vendor Status With World Bank

Wipro Technologies, the IT services business of Wipro, has announced that in connection with revised disclosure policies, Wipro and the World Bank are disclosing that in June 2007 the World Bank determined Wipro to be ineligible to contest direct contracts from the World Bank for the period 2007 – 2011.

In 2000, in connection with its Initial Public Offering (IPO) of American Depository Shares (ADS) in the United States, Wipro offered a commonly utilised and Securities and Exchange Commission approved Directed Share Programme (DSP) that allowed employees and clients to purchase ADS at the IPO market price. The Programme’s objective was to involve employees and customers with the public offering to expand brand recognition. A majority of the shares sold under the DSP were allotted to employees.

Pursuant to this programme, Wipro representatives offered the World Bank, through its Chief Information Officer (CIO) and a senior staff, participation in the programme 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. As per company statements, its inability to get future business from the World Bank will not adversely affect the business and results of operations.