Mastek rose 2.61% to Rs 277.50 at 9:25 IST on BSE, with the stock extending Monday's rally triggered by the company's board approving demerger of insurance products and services business into a separate listed company.
Meanwhile, the S&P BSE Sensex was down 5.04 points or 0.02% at 26,811.52.
On BSE, so far 94,000 shares were traded in the counter as against average daily volume of 2.15 lakh shares in the past two weeks.
The stock hit a high of Rs 280.90 so far during the day, which is also a 52-week high for the counter. The stock hit a low of Rs 274.30 so far during the day. The stock hit a 52-week low of Rs 117 on 1 October 2013.
Shares of Mastek have rallied 18.33% in two trading sessions from a recent low of Rs 234.50 on 12 September 2014, after the company during market hours on Monday, 15 September 2014, said its board approved demerger of insurance products and services business into a separate listed company. The stock had rallied 15.33% to settle at Rs 270.45 on Monday, 15 September 2014.
Mastek's board has approved the demerger of the Insurance Products and Services business of the company into a new company to be named 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 Inc.
Under the arrangement, Mastek shareholders will get one equity share of Majesco for every equity share held in Mastek. In addition to their existing Mastek shares, Majesco is proposed to be listed on the BSE and the NSE, being exchanges where Mastek is currently listed.
The scheme is subject to approval of the High Courts of Bombay and Gujarat. The appointed date for the demerger is 1 April 2014 and the appointed date for the offshore insurance transfer will be 1 November 2014. The scheme of arrangement will be further subjected to various statutory approvals, including those from the shareholders and the lenders/creditors of Mastek.
On a consolidated basis, Mastek's net profit fell 92.03% to Rs 0.90 crore on 0.9% decline in total income to Rs 227.60 crore in Q1 June 2014 over Q4 March 2014.
Mastek is a publicly held leading IT player with global operations providing enterprise solutions to insurance, government, and financial services organizations worldwide.
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