Datamatics Global Services shares rallied 8 percent intraday on Monday after the company decided to demerge and separately list its subsidiary Lumina Datamatics.
"The board members of both companies approved a proposal to merge the two companies into Datamatics Global Services. The merged company would then be vertically split into two companies, namely, Datamatics Global Services Ltd and LDR E-Retail Ltd," the IT solution provider said.
Shareholders of Datamatics Global Services will have an identical shareholding pattern in both company and LDR E-Retail Ltd. LDR E-Retail will be renamed as Lumina Datamatics Limited.
"The demerger will allow the managements of the each company to focus and pursue growth strategies tailored specific for the segments they serve. The demerger 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," the company reasoned.
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.
At 12:06 hours IST, the stock was quoting at Rs 109.40, up Rs 5.55, or 5.34 percent on the BSE.
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