Wipro stock rallied more than 1.5 per cent on the Bombay Stock Exchange on Monday after the soap-to-software company announced that its shareholders approved its demerger plan.

In a filing to the BSE, Wipro said that that its shareholders approved the demerger plan the at a court convened meeting held on December 28, allowing the company to hive off non-IT businesses into an unlisted division.

The company said in the statement, "The shareholders. approved the scheme of arrangement between Wipro Ltd (demerged company), Azim Premji Custodial Services Pvt Ltd (resulting company) and Wipro Trademarks Holding Ltd (Trademark Company)."

Reacting to the statement, investors sent the stock up by 1.34 per cent to Rs 396.50 a share on Monday.

Around 393 shareholders, including 18 from promoters, participated in the extraordinary general meeting.

The demerger plan was first announced by the company in November 2012. The main objective behind the plan is to allow the management to concentrate on the company's core business - IT business. The company was ordered by the Karnataka High Court to get its shareholders' approval before moving ahead with the plan.