NIIT's software biz spin-off by June-end

NIIT on Friday said its software business would be spun off by the third week of June and the whole exercise is on course as per its plans.  

"The scheme of arrangement is currently with stock exchanges. After that it would go to the courts. As of now, we are on the track to complete the spin-off by June third week," Vijay Thadani, CEO, NIIT said in New Delhi.

In December last week, NIIT board okayed spin-off of software solution business into NIIT Technologies Ltd.

The board had approved the draft scheme of arrangement to spin off the company's software solutions business into a separate company -- NIIT Technologies Ltd.

Consequent to the scheme, 75 per cent of the equity share capital of NTL shall be held by the shareholders of NIIT Ltd, while the balance 25 per cent shall be held by the demerged NIIT Ltd through a wholly-owned subsidiary.

The capital and reserves allocation has been proposed in a manner that in lieu of every 100 shares of Rs 10 each held by shareholders of NIIT Ltd, they shall receive 50 shares of demerged NIIT Ltd and 75 shares of NTL, both of face value of Rs 10 each, the company said.

The scheme of arrangement also envisages spinning off through the process of demerger, global software solutions business of NIIT into NTL and retaining the global education, learning solutions, knowledge solutions and education software business in the demerged NIIT.

The board of NIIT Ltd has also constituted a committee of director to execute formalities associated with the implementation of the scheme including necessary filing and seeking such stipulated approvals, it said.