NIIT to proceed with software spin off

NEW DELHI: NIIT Ltd, India's biggest computer education firm, said that its board had approved a plan to spin off its software services business into a new company.

New Delhi-based NIIT said in a statement its global software solutions business will now vest in a new company, NIIT Technologies Ltd.

"The global education, learning solutions, knowledge solutions and education software business will remain with the de-merged NIIT," the company said, adding the proposed scheme still awaited various approvals.

Shareholders of NIIT Ltd will receive 50 shares of the de-merged NIIT Ltd and 75 shares of NIIT Technologies Ltd for every 100 shares, it said.

"Consequent to the scheme, 75 percent of the share capital of NIIT Technologies will be held by the shareholders of NIIT Ltd. The balance 25 percent shall be held by the de-merged NIIT Ltd through a wholly owned subsidiary".

NIIT Ltd is India's 10th largest software services exporter.

Its shares close 1.4 percent higher on Friday at 265.85 rupees on the Bombay Stock Exchange while the benchmark index finished up 1.02 percent.

Reuters