NIITs Spin-off Plan On Track, Says CEO

New Delhi, March 28 | Updated: Mar 29 2004, 05:30am hrs
NIIT on Sunday said the scheme of arrangement for the spin-off of its software division into a separate company is on track, to be implemented from June-end.

So far everything is on track. We had said that by June-end, the spin-off would be implemented and at this point of time, it stands. After the ballot results of the extraordinary general meting (EGM), that was held on March 24 seeking the approval of the shareholders, come out in the next two to three days, we will have to inform the high court and based on that the next step would start, Vijay Thadani, CEO, NIIT, said.

Replying to a query that would the board approve the restructuring, Mr Thadani said, Of course, the next step is the high court will consider it and approve it.

NIIT had convened an EGM of shareholders on March 24 to seek their nod for spinning off its software business into a separate company under the proposed name NIIT Technologies Ltd (NTL).

The high court-convened meeting of the creditors and shareholders was held to seek nod for the restructuring. The chairman of the meeting will convey the results to the high court upon completion of the counting of the ballots, the company had stated.

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

The scheme envisages retaining the global education learning solutions and knowledge solutions and education software business in the demerged NIIT.

The plan to spin off the software business was first announced by the company in October last year to help accelerate growth.

As a listed company focussed only on IT services business, NTL would have greater flexibility as well as acquisition currency to create innovative strategic alliances, he said.

-PTI