Quess Corp shares rally 6% as NCLT clears demerger; new entities to list in two months

Quess Corp shares rallied 6% on Friday to an intraday high of Rs 674.50 on the BSE after the business services provider received NCLT approval to list its two newly demerged entities, Bluspring Enterprises and Digitide Solutions, within two months, founder-chairman Ajit Isaac told ET on Thursday.

The Bengaluru-headquartered company, with diverse businesses, is moving swiftly to establish the independent identities of its new firms. “We are among the few companies that have been on course with the demerger scheme,” Isaac said.

The company began the demerger process two years ago, which helped it plan the leadership and governance structures well in advance. The two new companies are the result of capital deployed through an IPO about eight years ago. “This is proof of our capital allocation strategy,” he added.


Executive Director Guruprasad Srinivasan will head Quess Corp, while current CFO Kamal Pal Hoda will lead Bluspring Enterprises. Quess Global Technology Solutions CEO, the US-based Gurmeet Chahal, will helm Digitide Solutions, the chairman said.

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“This move will improve operational efficiency, unlock shareholder value, and allow each entity to pursue its distinct growth strategy in an evolving business landscape," Isaac said.

Post-demerger, Quess Corp will continue to house India’s largest workforce management company, with a headcount of over 500,000 people and a footprint across nine countries.

Digitide Solutions will offer a comprehensive suite of solutions, including BPM services, insurtech, and HRO. Bluspring Enterprises will be an infrastructure services company operating primarily in the areas of facility management, food services, security services, industrial, and telecom infrastructure maintenance, Quess said in a statement.

Upon demerger, shareholders will receive one additional share in the new companies for every share held in Quess Corp.

Quess Corp Shares Target Price

According to Trendlyne data, the average target price of the stock is Rs 855, which indicates an upside of 34% from the current market price. The consensus recommendation from 8 analysts for the stock is a ‘Buy’.

Quess Corp Shares Performance

On Thursday, Quess Corp shares closed at Rs 635, up 1% on the BSE. The stock has declined 21% over the past six months but gained 72% in the last two years. The company’s market capitalization stands at Rs 9,447 crore.

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