NIIT Shares Gear Up for Demerger Ex-Date: Exciting Shift to NIIT Learning Systems Ahead
- ByStartupStory | August 9, 2023
NIIT Shares to Go Ex-Date for Demerger; NIIT Learning Systems to Take Over Corporate Learning
NIIT shares are set to go ex-date for a demerger on Thursday, following the company’s announcement of a composite scheme of arrangement. Under this scheme, NIIT transferred its corporate learning business to a new entity called NIIT Learning Systems, which became effective on May 24.
Shareholders of NIIT will receive one share of NIIT Learning Systems for each share of NIIT once the latter gets listed on stock exchanges. Today marks the record date for this corporate action, wherein eligible NIIT shareholders will be identified to receive shares from NIIT Learning Systems based on the arrangement.
After the demerger, NIIT will focus on its skills and careers business, while NIIT Learning Systems will operate the corporate learning business. In the financial year 2022-23, NIIT Learning Systems reported a profit after tax of Rs 192.20 crore, with revenue up 20% at Rs 1,361.80 crore. Its Ebitda margin for the quarter was 23.2%. The company added 12 globally managed training services contracts during the year, along with two contract expansions and 13 contract extensions.
Meanwhile, demerged NIIT’s profit for the year stood at Rs 3.20 crore, with revenue rising by 36% YoY to Rs 341.30 crore.
On May 29, Chairman and Co-founder of NIIT Group Rajendra S Pawar said NIIT group post demerger emerged as a stronger and more dynamic organization, unlocking growth and value for its customers, shareholders, and stakeholders. NIIT, he said, is poised to realize its true potential through the creation of two independently run businesses with significant growth capital.
In a filing to BSE, NIIT said: “Pursuant to the scheme, all option holders holding stock options, already granted by the company prior to the effective date to its employees under the NIIT ESOP Scheme 2005 shall be issued an equivalent number of stock options (in the ratio – 1:1) by Transferee Company under its New ESOP Scheme (as explained in Scheme).”
“Accordingly, upon the scheme becoming effective, the existing exercise price of all the stock options for the option holders in the company granted under NIIT ESOP 2005 has been adjusted between NIIT Limited and NIIT Learning Systems Limited, in terms of the Scheme, in an enclosed manner,” it said.
Regarding stock options, NIIT explained that holders of stock options granted under the NIIT ESOP Scheme 2005 will receive equivalent stock options (in a 1:1 ratio) from Transferee Company under its New ESOP Scheme, following the effective date of the scheme.
In a filing to BSE, NIIT stated that the existing exercise price of stock options granted under NIIT ESOP 2005 has been adjusted between NIIT Limited and NIIT Learning Systems Limited as per the scheme’s terms.
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