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Nxtdigital shares surge 19% on nod to scheme of arrangement with Hinduja Global Solutions

The board also approved the share exchange ratio for the proposed transfer

February 18, 2022 / 01:23 PM IST
Nxtdigital

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Nxtdigital share price surged 19 percent intraday to Rs 479 on February 18 after the company approved the scheme of arrangement with Hinduja Global Solutions.

"The board of directors of Nxtdigital at its meeting approved the proposed scheme of arrangement between Nxtdigital (NDL) and Hinduja Global Solutions Limited (HGSL) and their respective shareholders for the demerger of the digital, and media and communication business undertaking of NDL into HGSL on a going concern basis," the company said in a statement.

The board also approved the share exchange ratio for the proposed transfer.

The ratio was approved based on the comprehensive valuation exercise carried out and recommended by two independent valuers - KPMG Valuation Services LLP and SSPA & Co, Chartered Accountants.

According to the valuation, each shareholder of NDL holding 63 equity shares will receive 20 fully paid equity shares (after bonus) of face value of Rs 10 per share of HGSL.

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These new share allotments in HGSL will be over and above the existing shares of NDL held by the shareholders, thus retaining their existing shareholding in NDL.

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"The media and entertainment industry is going through a digital transformation on the back of emerging technologies. The proposed

transfer, once completed, will fuel our expansion plans in the digital space, as we look to harness analytics and automation to grow our digital portfolio across video, broadband, OTT, WIFI and other services,” said Vynsley Fernandes, Managing Director and CEO of Nxtdigital.

At 1:03pm, Nxtdigital was quoting at Rs 440, up Rs 39.95, or 9.99 percent, on the BSE.
Moneycontrol News
first published: Feb 18, 2022 01:23 pm
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