Quess Corp shares rose by 16% and hit a 52-week high after announcing the demerger plan on 16 February 2024.

According to the exchanges’ filing, the company will split into three separate entities, Quess Corp Ltd., Digitide Solutions Ltd, and Bluspring Enterprises Ltd., after the demerger. The demerger process is slated to be completed between 12 and 15 months to achieve regulatory clearances.

After the demerger, Quess Corp shareholders will receive one additional share in each new company for every share they currently hold in Quess Corp.

According to the merger details, Quess Corp will retain the workforce management, while Digitide Solutions will take over the business process management, insurtech, and human resource outsourcing businesses. Bluspring Enterprises will manage the facility management, industrial services, and investments.

The company has announced its plans to reorganise and separate its business portfolio. This will help improve the value proposition for customers, unlock significant long-term valuation, and create more value for shareholders. The company aims to achieve this by focusing on management, making clearer choices of capital allocation and providing flexibility to investors, strategic partners, lenders, and stakeholders to participate in some or all of these distinct businesses.

Mr Ajit Isaac, Chairman of Quess Corp., said that the company has made a significant decision to create three separate entities. This will enable the management team to focus on developing capital allocation plans for each business, creating value for shareholders. The decentralised structure of Quess has allowed for a culture of entrepreneurship, employee-friendly workplace, and customer-centricity. The demerger is then ready to unlock value for the company.

At 2:10 pm, Quess shares were trading at Rs 545.65, 8.83% higher than its previous close on the National Stock Exchange (NSE).