Shares of Quess Corp zoomed 13 percent on February 19 morning after the company announced it will split into three independent entities, a move aimed at unlocking shareholder value.
The demerger proposal was approved at the company’s board meeting on February 16.
The split will result in three separate listed companies Quess Corp, Digitide Solutions and Bluspring Enterprises. While Quess will handle workforce management, business process management, Insurtech and HR outsourcing will go to Digitide and facility management, industrial services and investments to Bluspring.
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As per the demerger scheme, shareholders of Quess will receive one additional share in each of the new companies for every share they hold in the Bengaluru-headquartered company.
The demerger is expected to take 12-15 months to achieve regulatory clearances.
The company has, so far, been operating under the four business verticals of workforce management, global technology solutions, operating asset management and product-led businesses.
"Overall, Quess has achieved scale in each platform, and they are strategically, operationally, and financially positioned to become independent companies with a focus on growing in their chosen area," the company said in a statement.
"The three entities are ideally placed to capitalise on India’s growth trajectory as the country marches towards a $5 trillion economy."
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At 9.36 am, Quess Corp was trading 11 percent higher at Rs 556.05 on the National Stock Exchange (NSE). The stock has rallied 48 percent in the past year, outperforming the benchmark Nifty, which has risen 23 percent during the period.
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