The promoters of India's third largest IT services company Wipro, which include Azim Hashim Premji and his family, saw their wealth erode by Rs 4,606 crore in two days, after the company put up a 'flop-show' in its third quarter results.
The value of promoters' holdings at the IT major came down from Rs 1,10,593 crore, to Rs 1,06,004 crore in a span of two trading sessions.
After the company reported the decline of 8.5% in its quarterly profit, on a year-on-year basis, the market sentiment about the company has largely been negative. The company's scrips feel 4.2% since its close on Friday. On Tuesday, its closing share price stood at Rs 315.25, compared with Rs 328.95 on Friday.
While Premji's individual net worth was down by Rs 255.93 crore, the family net worth was down by Rs 261.45 crore. There are six other members in the promoters group - Hasham Traders, Prazim Traders, Zash Traders, Hasham Investment and Trading, Azim Premji Trust, and Azim Premji Philanthropic Initiatives. All these companies and trusts are Premji's initiatives. The combined loss of wealth for these six promoters amounts to Rs 4,344.9 crore.
The combined shareholding of the Premji family at the IT major is a whopping 74.33% of the publicly listed shares (3,36,19,97,805 shares).
The drop of over 4% also saw company's market capitalisation erode by Rs 6,197 crore in the past two days.
The company reported a massive dip of 8.5% in its quarterly profits on Friday. The company's net profit dropped to Rs 1,936 crore, compared with Rs 2,115 crore in the corresponding quarter of last year.
The company did not respond on the issue till the time of publishing this story.