Mastek to demerge insurance business; shares rise 16%
Shareholders will get one equity share of Majesco for every equity share they hold in Mastek
Mumbai: The board of directors of software services exporter Mastek Ltd on Monday approved the demerger of the insurance products and services business of the company into a new firm called Majesco Ltd, Mastek informed the BSE.
“The board has approved the demerger of the insurance products and services business into Minefields Computers to be renamed as Majesco, followed by transfer of the offshore insurance operations by Majesco to Majesco Software and Solutions India, a wholly owned subsidiary of MajescoMastek Insurance Software and Solutions,” it said in a statement issued to the exchanges.
Mastek shareholders will get one equity share of Majesco for every equity share they hold in Mastek. Majesco is proposed to be listed on BSE and the National Stock Exchange, the exchanges where Mastek is currently listed.
“This is part of Mastek’s continuing endeavour to maximize shareholder value and create a platform for the insurance products and services business to tap the immense opportunity in the US and global insurance market,” said S Sandilya, chairman, Mastek.
Mastek shares rose as much as 19.3% in intra-day trade after the announcement on Monday. The scrip closed 16.10% up at Rs.272.25 apiece, while the BSE Sensex shed 0.90% to 26,816.56 points.