Wipro Technologies, the global IT services business of Wipro, 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 utilized and Securities and Exchange Commission approved Directed Share Program (DSP) that allowed employees and clients to purchase ADSs at the IPO market price.
Pursuant to this program, Wipro’s representatives offered the World Bank, through its Chief Information Officer (CIO) and a senior staff, participation in the program 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 program 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, though the company has stated that its inability to get future business from World Bank will not adversely affect the business and results of operations.