/ -- The Board of Directors of Datamatics Global Services Limited ('DGSL'), and Lumina Datamatics Limited ('Lumina') in their respective board meetings today, approved a proposal to merge the two Companies into DGSL. The merged Company would then be vertically split into two Companies, namely, Datamatics Global Services Ltd. and LDR E-Retail Ltd. Thus, the shareholders of DGSL will have an identical shareholding pattern in both DGSL and LDR E-Retail Ltd. The latter will be renamed as Lumina Datamatics Limited.
The scheme is subject to regulatory approvals and proposes an appointed date of April 1, 2019.
The board was of the view that the businesses of two companies serve completely different market segments and have different offerings. The de-merger will allow the managements of each Company to focus and pursue growth strategies tailored specific for the segments they serve. The de-merger will also give direct visibility of the opportunity and assets for both the companies which will further unlock value for the shareholders by way of separate listing.
DGSL is a Technology and BPM services company that builds intelligent solutions enabling data-driven businesses to digitally transform themselves through Robotics, Artificial Intelligence, Cloud, Mobility and Advanced Analytics.
Lumina is engaged in the business of providing e-retail and digital publishing services in content development, design and composition, content transformation, e-books and new media, rights and permissions, QA services, project management, consulting and information services, publishing and e-retail software development and implementation, digital assets management and storage, adaptive assessment system, site merchandising, market intelligence and e-commerce data publishing & e-retail solutions to clients. Lumina is already one of the 5 largest Companies in this field.
The consolidated income of DGSL for FY 17-18 was Rs.935 crores and FY19H1 was Rs.552 crores. The consolidated income of Lumina for FY 17-18 was Rs.237 crores and FY19H1 was Rs.130 crores. The consolidated income of DGSL (excluding Lumina) for FY 17-18 was Rs.698 crores and FY19H1 was Rs.423 crores.
Mr. Rahul Kanodia, Vice - Chairman & CEO, Datamatics said, "Both the businesses are witnessing steady growth and de-merger will further help us to bring focus, sharpen our future strategies and unlock value for all stakeholders."
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