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Business News/ Markets / Stock Markets/  NIIT share price hits upper circuit after demerger record date. Do you own?
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NIIT share price hits upper circuit after demerger record date. Do you own?

NIIT share price today hit 5 per cent upper circuit after trading ex-demerger on Thursday

NIIT demerger: Board of directors had fixed 8th June as record date for subdivision of the company into two separate companies — NIIT Ltd and NLSL. (MINT)Premium
NIIT demerger: Board of directors had fixed 8th June as record date for subdivision of the company into two separate companies — NIIT Ltd and NLSL. (MINT)

NIIT share price has been under bulls' lens since announcement of demerger into two separate companies — NIIT Ltd and NLSL. As company board had fixed NIIT demerger record date on 8th June 2023, NIIT shares traded ex-demerger on Thursday. However, the stock is still under the lens of stock market bulls as the stock witnessed heavy buying interest during early morning deals on Friday.

NIIT share news

NIIT share price today opened upside and went on to hit intraday high of 104.70 apiece on BSE, hitting 5 per cent upper circuit within few minutes of stock market's opening bell today. However, the stock witnessed profit booking soon and hit intraday low of 99 apiece levels as well. NIIT share price is currently quoting 101.45 apiece, which is around 1.40 per cent higher from its Thursday close after the price adjustment.

 

As per the information available on BSE's website, the board of directors of the company had informed Indian bourses that NIIT demerger record date was fixed on 8th June 2023 and the stock traded ex-demerger on the same date. The edu-tech company had announced demerger of shares in 1:1 ratio where an eligible shareholder would be awarded one share for every one share held by him or her.

NIIT demerger details

Informing about the NIIT demerger, the edu-tech company said, "This is in continuation to our letter dated May 24, 2023 regarding effectiveness of the Composite Scheme of Arrangement between NIIT Limited ('Transferor Company/ the Company') and NIIT Learning Systems Limited ('Transferee Company') and their respective Shareholders and Creditors under Sections 230 to 232 and other applicable provisions of the Companies Act, 2013 ('Scheme'). Pursuant to the Scheme, all option holders holding stock options, already granted by the Company prior to the Effective Date to its employees under the NIIT ESOP Scheme 2005 shall be issued equivalent number of stock options (in the ratio - 1:1) by Transferee Company under its New ESOP Scheme (as explained in Scheme). Accordingly, upon the Scheme becoming effective, the existing exercise price of all the Stock Options for the option holders in the Company granted under NIIT ESOP 2005 has been adjusted between NIIT Limited and NIIT Learning Systems Limited, in terms of the Scheme, in the enclosed manner."

NIIT demerger was organised around a year ago. In this reorganisation plan, the edu-tech company board had approved split in two separate companies. NIIT demerger of corporate learning business was completed last month, with the business transferred to NIIT Learning Systems.

After NIIT demerger, NIIT Limited will be focussing on the Skills & Careers business whereas NLSL will operate the Corporate Learning Business.

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ABOUT THE AUTHOR
Asit Manohar
Chief Content Producer at Live Mint Digital Team
Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
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Published: 08 Jun 2023, 01:40 PM IST
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