Leading business services provider
Quess Corp has announced the demerger of its diversified businesses into three independent entities -- Quess Corp Ltd, Digitide Solutions Ltd, and Bluspring Enterprises Ltd -- in a bid to unlock value for its investors.
In an official release, the company said that its Board of Directors approved the demerger proposal at the board meeting held on Friday.
According to a press release
, Quess Corp Ltd will continue to remain in workforce management, while Digitide Solutions Ltd will hold business process management (BPM) solutions, Insurtech, and HRO business. The third entity, Bluspring Enterprises Ltd, will look after facility management, industrial services, and investments.
This comes weeks after
Quess Corp reported an 8% rise in its revenue to ₹4,842 crore during the December quarter compared to ₹4,466 crore in the same quarter last year.
However, the profit after tax (PAT) of the company which was set up in Bengaluru in 2007, dropped 24.7% to ₹64 crore from ₹85 crore on account of a one-off exceptional expense in the quarter.
The company stated that the demerger will simplify corporate structure by separating scaled platforms into independent entities, with each of them having a strong market positioning. It will enhance strategic clarity and management focus to accelerate profitable growth, while each entity will have the ability to create a compelling investor proposition and attract investors.
Once the demerger is effective, all the shareholders will be provided an additional share of each of the new companies for every share they hold in the company, Quess Corp Ltd. The demerger is expected to be completed within 12-15 months, the statement said.
Calling the demerger a ‘landmark moment’ and a ‘transformational decision’ for the company, chairman Ajit Isaac said, “It helps the management to focus, develop capital allocation plans relevant to each business, and create value for our shareholders. The decentralised structure at Quess has enabled a pathway for the three demerged entities to continue a culture of entrepreneurship, an employee-friendly workplace with customer centricity being at the core of our purpose.”
“We believe that the heavy lifting to create these entities has been done and it is now time to unlock value through this demerger,” Isaac added.
About Quess Corp Ltd
In the last decade, the company has emerged as a leading business services provider in the country and has extended its footprint to nine countries in the world
. It has a workforce of over 5,50,000 associates across four distinct business platforms, which serve over 3,000 clients across diverse sectors.
Quess Corp offers a wide range of technology-enabled staffing and managed outsourcing services in key areas such as sales and marketing, customer care, after-sales service, manufacturing, facilities and security management, HR and finance operations, and IT and mobile services, among others.
(Edited by : Sudarsanan Mani)
