The Board of Directors of Mastek Limited in its meeting held, approved the demerger of the Insurance Products and Services business of Mastek Limited (Mastek) into a new company to be named as Majesco Limited (Majesco) followed by transfer of the offshore insurance operations business (Offshore Insurance) by Majesco to Majesco Software and Solutions India Private Limited (MSS India), a wholly owned subsidiary of MajescoMastek Insurance Software and Solutions (MM ISS) (Proposed Restructuring).
Mastek shareholders will get one equity share of Majesco for every equity share held in Mastek, in addition to their existing Mastek shares. Majesco is proposed to be listed on the BSE and the NSE, being exchanges where Mastek is currently listed.
Mr. S Sandilya, Chairman, Mastek said "This is part of Mastek’s continuing endeavour to maximise shareholder value and create a platform for the Insurance products and services business to tap the immense opportunity in the US and Global Insurance market."
Mr. Sudhakar Ram, Managing Director & Group CEO, Mastek said "This move is in line with Mastek’s core ideal of "Win for All". The proposed business structure enables the group to take advantage of the market opportunity presented in the US and in the UK and is aimed at aligning the business models, capital allocation and decision making within the Group. The restructuring will create value for all its stakeholders including customers, employees and shareholders"
Mr. Ketan Mehta, Director, Mastek said "US Insurance Industry is in the midst of a once in a generation modernisation cycle, providing an excellent opportunity for Majesco to gain a large share in the growing market. This restructuring will enable creation of a strong platform to pursue next stage of growth"
The Board of Mastek approved the scheme of arrangement and believes that the restructuring will meet the following objectives:
Facilitate businesses to independently pursue their growth plans through organic / inorganic means.
Enhance management focus and operational flexibility.
Create platform to enhance financial flexibility.