NIIT Board Approves Demerger

New Delhi | Updated: Dec 29 2003, 05:30am hrs
The merger of global software solutions business of NIIT to form a separate company as NIIT Technologies Limited (NTL) has been approved by the board of directors of NIIT Ltd.

This approval includes the spinning off, through the process of demerger, of global software solutions business of NIIT into NTL, while retaining the global education, learning solutions, knowledge solutions and education software businesses in the de-merged NIIT, according to information released by the company.

The capital and reserves allocation have been proposed in a manner that in lieu of every 100 shares of Rs 10 each held by shareholders of NIIT Limited, they shall receive 50 shares of demerged NIIT Limited and 75 shares of NTL, both of face value of Rs 10 each.

Consequent to the scheme, 75 per cent of the equity share capital of NTL shall be held by the shareholders of NIIT Limited. The balance 25 per cent shall be held by demerged NIIT Limited through a wholly-owned subsidiary.

Consequent to the scheme, 75% of the equity share capital of NTL shall be held by shareholders of NIIT Ltd.
The board of NIIT Limited has also constituted a committee of directors to execute formalities associated with the implementation of the scheme, including necessary fillings and seeking such approvals as may be necessary.

The companys script closed at 265.8 on December 26 2003 and its 52 weeks high was recorded at 267.8. As of September 30, 2003, the promoters held 31.36 per cent stake in the company, institutional investors 43.4 per cent, other investors 7.18 per cent and the public held 18.02 per cent.

Consequently, the promoters of the company would get 90.89 lakh shares in NTL and 60.6 lakh shares in the demerged NIIT Limited as against 1.21 crore shares they held in the company before consolidation as per the September 2003 shareholding data.