Shares of IT firm Mastek soared over 16 per cent today as the board of directors of the company approved demerger of insurance products and services business into a separate listed company.
Mastek's stock ended 16.10 per cent higher at Rs 272.25 on the BSE. During the day, it climbed 19.27 per cent to Rs 279.70 -- its 52-week high.
At the NSE, the company's stock settled with a sharp gain of 15.79 per cent at Rs 271.70.
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Following the rally in the stock, the company's market value rose by Rs 86 crore to Rs 607 crore.
"The Board has approved demerger of insurance products and services business into Minefields Computers Private Limited, 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," Mastek said in a filing to the BSE.
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.
The scheme of arrangement will be subject to various statutory approvals, including those from shareholders and lenders/creditors of Mastek Limited.
