Shares of Quess Corp declined sharply on Tuesday, falling over 50 percent following the demerger of its two units — Digitide Solutions and Bluspring Enterprises. The stock closed at Rs 296 on Tuesday, April 15.
The decline is a result of the company’s restructuring exercise and not indicative of any deterioration in business fundamentals. April 15 was the record date for the demerger, and investors holding shares as of that date will be allotted shares in the two newly formed entities, once regulatory processes are complete.
The demerger, announced in February 2024 and cleared by the National Company Law Tribunal, aims to create three independent, focused businesses. The market value of Digitide and Bluspring will be known once the companies are listed in the coming weeks.
The equity shares of the new companies will be listed on the two exchanges, National Stock Exchange and Bombay Stock Exchange, on grounds of the applicable regulations and necessary regulatory approvals.
"With this approval, the demerger plan is taking place as per schedule, and the company has been meticulously preparing for this event. Following this, Quess Corp (Remaining Company) will continue to house India’s largest workforce management company with a headcount of over 5 lakh and a footprint across nine countries," said Quess Corp in its previous exchange filing, notifying of the demerger.
Quess Corp will continue to operate in the way of its current presence across business verticals, chaired by Guruprasad Srinivasan.
Digitide Solutions will be a new entity focusing on the fast-growing technology sector. Gurmeet Chahal will be the CEO.
Bluspring Enterprises, another new entity will be aimed at core business services and consulting. Kamal Pal Hoda will be the new CEO.
A shareholder with a stake in Quess Corp will now be holding shares across three entities as a result of the demerger.
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