Mastek rose 13.29% to Rs 495.70 at 14:42 IST on BSE ahead of the shareholders' meeting today, 5 March 2015, to consider demerger of insurance products & services business of Mastek to Minefields Computers.
Meanwhile, the BSE Sensex was down 142.94 points, or 0.49%, to 29,237.79.
On BSE, so far 10.19 lakh shares were traded in the counter, compared with an average volume of 2.49 lakh shares in the past one quarter.
The stock hit a high of Rs 508 so far during the day, which is also a 52-week high for the counter. The stock hit a low of Rs 441.80 so far during the day. The stock hit a 52-week low of Rs 160.20 on 12 May 2014.
The stock had outperformed the market over the past one month till 4 March 2015, rising 13.67% compared with 1.72% rise in the Sensex. The scrip had also outperformed the market in past one quarter, rising 64.15% as against Sensex's 2.86% rise.
The small-cap company has an equity capital of Rs 11.22 crore. Face value per share is Rs 5.
In the court convened meeting, equity shareholders of Mastek will consider demerger of Insurance Products and Services Business of Mastek to Minefields Computers and transfer by way of slump sale of Offshore Insurance Operations by Minefields Computers to Majesco Software And Solutions India and consequential restructuring of share capital of Minefields Computers
The board members of Mastek, on September 15, had approved the demerger of the insurance products and services business of Mastek into Minefields Computers (to be renamed as Majesco) followed by transfer of the offshore insurance operations by Majesco to Majesco Software and Solutions India (MSS India). MSS India is a wholly-owned subsidiary of MajescoMastek Insurance Software and Solutions Inc (MM ISS).
Meanwhile, the software services provider's subsidiary Majesco, USA (formerly known as MajescoMastek) is going to list on NYSE-MKT. Majesco, the insurance arm, is based in California and Cover-All Technologies Inc, a Delaware-based corporation, had entered into an agreement and plan of merger on 14 December 2014 and the exchange ratio for merger is 0.21466.
On a consolidated basis, Mastek's net profit jumped 400% to Rs 8.70 crore on 9.11% rise in total income to Rs 266.59 crore in Q3 December 2014 over Q2 September 2014.
Mastek is a publicly held leading IT player with global operations providing enterprise solutions to insurance, government, and financial services organizations worldwide.
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