Azim Premji allocates his additional 18% stake in company to Charity

By Raqib Hameed Naik, Twocircles.net,

Bengaluru: IT tycoon and Wipro’s chairman Azim Premji has committed to give around additional 18 % of his stake in Wipro for charity purposes, taking his total charity to 39 % of his company’s shares (worth Rs 53,284 crore) primarily for funding education.


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The latest philanthropic initiative by Premji would pump in an additional Rs 530 crore by way of dividends into the Azim Premji Trust’s corpus this year.

Azim Premji (Courtesy: thewiire)

“Over the past 15 years, I have tried to put this belief into action through my personal philanthropic work. Over these years, I have irrevocably transferred a significant part of the shareholding, amounting to 39 % of the shares of Wipro, to the Trust,” Premji wrote in a letter to all the shareholders.

Premji, 69, controls a 73.39 % stake in Wipro and also owns a private equity fund, PremjiInvest, which manages his $1 billion worth of personal portfolio.

Wipro is India’s third-largest exporter company of IT products and services. In Wipro’s annual report for the year ended March 2015, Premji said he has now allocated the equivalent of 39% of the company’s shares to a trust focused on philanthropic initiatives, mainly primary education. The additional 18% stake forms the latest tranche of shares Premji has allocated for charity.

Apart from the latest development, Premji is the first Indian to sign up for The Giving Pledge, a campaign led by Warren Buffett and Bill Gates, to encourage the wealthiest people to make a commitment to give most of their wealth to philanthropic causes. He is the third non-American after Richard Branson and David Sainsbury to join this philanthropy club.

In 2001, Premji had founded the Azim Premji Foundation, a non-profit organisation, with a vision to significantly contribute to achieving quality universal education that facilitates a just, equitable, humane and sustainable society. The Foundation works in the area of elementary education to pilot and develop ‘proofs of concept’ that have a potential for systemic change in India’s 1.3 million government-run schools.

Pertinently, Premji was considered the ‘Most Generous Indian of 2014’ in a survey by Hurun Research Institute.

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