Mastek zooms 25% in two days on demerger plan

Mastek has surged nearly 9% to Rs 293, extending its previous day’s rally on National Stock Exchange, after the company on Monday announced the demerger of its insurance products and services business into a new company called Majesco.

In past two trading sessions, the stock zoomed 25% from Rs 235 on September 12, against 1% decline in benchmark CNX Nifty.
 

Under the demerger scheme, Mastek shareholders will get one equity share of Majesco for every equity share held in Mastek.The new entity, Majesco, is proposed to be listed on the BSE and NSE.

Majesco, which will look into the insurance and products business, and Mastek, which will focus on the solutions business, are planning to grow by acquiring companies, mainly in the UK.

The trading volumes on the counter almost doubled with a combined 2.06 million shares changing hands on NSE and BSE till 1030 hours.