Hinduja TMT demerges IT/ITES unit

Hinduja TMT has demerged its IT/ITES undertaking into a new company and merged its media and content subsidiary InNetwork Entertainment into the residual entity.

According to an official release issued to the BSE by the company today, the Board of the company granted approval for the move at its meeting held today.

Both the companies would be listed on the BSE and the NSE and the current shareholders of the company would be allotted shares of both the companies in proportion to the capital employed in the respective businesses. The appointed date of the demerger would be April 01, 2006, the release said.

Ashok P Hinduja, chairman of Hinduja TMT said: "the demerger and related restructuring will unlock immense shareholder value. While the current market cap is about Rs 2,220 crore, the sum of parts valuation is significantly higher, which could get unlocked. It will also go a long way in speeding up inorganic growth opportunities in both technology and media/ telecom companies, apart from aiding the induction of strategic and/or financial partners. Operational efficiencies in both the resultant companies would also increase."