Wipro Corporation chairman Azim H Premji said, "The restructuring is in line with Wipro's approach to encourage entrepreneurial talent in the company to create value for shareholders."

Wipro's support to the new company would be through a financial stake, he said. The board of the new entity would include two nominees from Wipro while the new company would be allowed to use Wipro brand for a three-year transition period, Premji said. The new company would be largely owned by employees while Wipro Ltd would hold 39 per cent ownership.

Wipro Ltd vice-chairman Arun Thiagarajan said, having a separate entity would help Wipro Peripherals to emerge as a dominant player in the market and would also allow Wipro Infotech to focus on comprehensive IT services and solutions.

"The new entity will continue to be our preferred partner for providing high quality peripherals to our customers as part of our focus on IT services and solutions," said Thiagarajan.

The new entity would be initially called Wipro Peripherals Ltd and Ram N Agarwal has been appointed managing director and chief finance officer. Vineet Agrawal, chief executive Wipro Intofech (peripheral division) has been appointed corporate vice-president and he would be would be responsible for mission, quality, innovation and building brand.