Govt sells enemy shares worth Rs 1,150 crore in Wipro; Life Insurance Corp among major buyers

The government on Thursday sold enemy shares worth around Rs 1,150 crore in IT firm Wipro to Life Insurance Corporation and two other state-owned insurers. The proceeds of the sale will be used to shore up the divestment kitty.

Enemy property refers to the assets left behind by people who migrated to Pakistan or China and are no longer citizens of India. According to block deal data available with BSE, the Custodian of Enemy Property for India sold more than 4.43 crore Wipro shares at a price of Rs 258.90 per share.

Apart from Life Insurance Corporation (LIC), General Insurance Corporation and The New India Assurance Corporation have bought the shares.

LIC  purchased more than 3.86 crore enemy shares.

The Custodian of Enemy Property for India is an entity of the central government which looks after enemy property and shares. In November 2018, the government cleared a mechanism for sale of enemy shares in companies.

The sale would help in monetisation of movable enemy property lying dormant for decades and the proceeds would be used for development and social welfare programmes, an official statement had said in November 2018.

According to Enemy Property Act, 1968, "enemy property" refers to any property belonging to, held or managed on behalf of an enemy, an enemy subject or an enemy firm.

"Sale proceeds are to be deposited as disinvestment proceeds in the government account maintained by the Ministry of Finance," the statement had said.

The Department of Investment and Public Asset Management has been authorised to sell the shares. The decision, taken by the Union Cabinet, will lead to monetisation of movable enemy property lying dormant for decades and the proceeds will be used for development and social welfare programmes, an official statement said.

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Edited by Aseem Thapliyal