Quess Corp will split into three independent entities in what the business services provider said is a move aimed at unlocking shareholder value.
The demerger proposal was approved at the company’s board meeting on Friday.
This will result in the separate listed companies of Quess Corp, Digitide Solutions and Bluspring Enterprises. They will handle workforce management (Quess), business process management, Insurtech and HR outsourcing (Digitide) and facility management, industrial services, and investments (Bluspring).
As per the demerger scheme, shareholders of Quess will receive one additional share in each of the new companies for every share they hold in the Bengaluru-headquartered company. The demerger is expected to take 12-15 months to achieve regulatory clearances, Quess said in a statement.
Quess has so far been operating under the four business verticals of workforce management, global technology solutions, operating asset management and product-led businesses.
“Overall, Quess has achieved scale in each platform, and they are strategically, operationally, and financially positioned to become independent companies with a focus on growing in their chosen area,” the company said. “The three entities are ideally placed to capitalise on India’s growth trajectory as the country marches towards a $5 trillion economy.”
Quess Chairman Ajit Isaac said the demerger would help the management to focus, develop capital allocation plans relevant to each business, and create value for shareholders. “The decentralised structure at Quess has enabled a pathway for the three demerged entities to continue a culture of entrepreneurship, an employee-friendly workplace with customer centricity being at the core of our purpose. We believe that the heavy lifting to create these entities has been done and it is now time to unlock value through this demerger.”
The company’s largest shareholder, Fairfax Financial Holdings chairman Prem Watsa said each of the new entities would be a market-leading player with the ability to leverage opportunities that come its way through its renewed focus.
“From the time we initially invested in Quess Corp Ltd., in 2013, the company has become one of the largest domestic employers in India and has the potential to develop as a significant business services player on a global scale.”
“We are confident that this strategic initiative will benefit all shareholders and ensure that the management team gets the support to achieve the set-out goals from the demerger,” Watsa said.
Quess Corp ended the December quarter with a headcount of about 5,55,000 people with presence across nine countries.
