Government Makes Rs 1,150 Crores By Selling 44.4 Million ‘Enemy Shares’ In Wipro; LIC Major Buyer 
Government Makes Rs 1,150 Crores By Selling 44.4 Million ‘Enemy Shares’ In Wipro; LIC Major Buyer Wipro office in Bengaluru. (Flickr/Ravi Karandeekar)

The Union government on Thursday (4 April) sold “enemy” shares in IT behemoth Wipro worth Rs 1,150 crore and is looking to classify the proceeds under its divestment agenda, reports Business Standard (BS).

The enemy property, which can include land, shares held in companies, gold etc., refers to the property previously belonging to the citizens of enemy countries (for example, Pakistan and China). These were later seized by the Indian government during times of war.

The government sold 44.4 million shares of the company at Rs 259 apiece on the Bombay Stock Exchange (BSE) in a block deal. These shares were held by the Custodian of Enemy Property for India CEPI), which is an entity of the central government formed to look after enemy properties and shares.

State-owned Life Insurance Corporation of India (LIC), New India Assurance and General Insurance Corporation bought the shares. LIC alone alone accounted for shares worth Rs 1,000 crore.

A Much-Needed Reform

On 9 November, the Union Cabinet, chaired by PM Modi, had given its ‘in-principle’ approval for the mechanism and procedure to be adopted for the sale of enemy shares. As of December 2018, a total of 6,50,75,877 shares in 996 companies were under CEPI’s possession with a cumulative value of about Rs 3,000 crore.

The govt had constituted an Alternative Mechanism (AM) committee that decided on the process of selling these shares. It was chaired by the Union Minister of Finance, Arun Jaitley and will include the Union Minister of Road Transport, Nitin Gadkari.

Also Read: How Congress Is Jeopardising India’s Security Interests By Opposing Modi Government’s Enemy Property Act

An Appeal...

Dear Reader,

As you are no doubt aware, Swarajya is a media product that is directly dependent on support from its readers in the form of subscriptions. We do not have the muscle and backing of a large media conglomerate nor are we playing for the large advertisement sweep-stake.

Our business model is you and your subscription. And in challenging times like these, we need your support now more than ever.

We deliver over 10 - 15 high quality articles with expert insights and views. From 7AM in the morning to 10PM late night we operate to ensure you, the reader, get to see what is just right.

Becoming a Patron or a subscriber for as little as Rs 1200/year is the best way you can support our efforts.

Become A Patron
Become A Subscriber