Dalal Street cheers Quess Corp move of demerger; stock hits 52-week high
At around 12:52 p.m., shares of the Quess Corp were trading up 8.96 per cent, or Rs 44.9, at Rs 545.8 apiece. Meanwhile, its market capitalisation stood at Rs 8,103.95 crore at around the same time.
Shares of Quess Corp zoomed over 15 per cent in morning trade on February 19 and clocked a 52-week high on BSE at Rs 580 apiece. The stock rallied for the fifth session in a row.
At around 12:52 p.m., shares of the leading business services provider were trading up 8.96 per cent, or Rs 44.9, at Rs 545.8 apiece. Meanwhile, its market capitalisation stood at Rs 8,103.95 crore at around the same time.
What's driving the stock?
On Friday, after market hours, the company informed investors that its board had approved the demerger of three companies-- Quess Corp Ltd, Digitide Solutions Ltd, and Bluspring Enterprises Ltd.
"The Board of Directors of the Company at their meeting held today, February 16, 2024, approved the Composite Scheme of Arrangement amongst the Company, Digitide Solutions Limited and Bluspring Enterprises Limited," the company filing read.
The demerger will lead to new investment, better capital allocation, and growth. For every one share of Quess Corp, investors will get one additional share of all new companies. The process is expected to be completed in the next 12-15 months. The management expects a 16-17 per cent compound annual growth rate (CAGR) in the next three years.
After the demerger, Digitide Solutions Ltd, and Bluspring Enterprises Ltd will be listed on stock exchanges.
According to the plan:
-Quess Corp will remain in workforce management.
-Digitize Solutions will hold business process management, insurtech, and human resource outsourcing businesses.
-Bluspring Enterprises will work in facility management, industrial services, and investments.
How did Quess Corp fare in Q3?
Quess Corp reported a consolidated net profit of Rs 63.65 crore in the third quarter ended December 31, 2023, against Rs 85.398 crore a year ago. The revenue for the third quarter stood at Rs 4841.8 crore against Rs 4465.6 crore year-on-year (YoY).
Quess Corp share price: Past performance
In a year, shares of Quess Corp have gained over 49 per cent against Nifty 50's rise of over 23 per cent.
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