Why Quess Corp shares are showing up 53% fall in some trading app today

Shares of Quess Corp settled at Rs 295.80 at BSE on Tuesday after the company demerged two business entities namely- Digitide Solutions and Bluspring Enterprises- from itself. The spin-off will lead to listing of three separate entities on the exchange as the demerged companies shall be listed on the National Stock Exchange and BSE later.

Shares of Quess Corp shall be signalling a more than 51 per cent fall in its stock price against the previous close at Rs 605.45 on BSE. Similarly, the stock had settled at Rs 604.90 on NSE, settling at Rs 284 on the exchange, indicating a 53.05 per cent fall in the stock price from the previous close.

This is because of the value of two new businesses subtracted from the stock prices. It is the fair value determined by the market for Quess Corp business and the value of other two resultant entities- Digitide Solutions and Bluspring Enterprises- shall be determined on their respective listing.
 

Following the re-listing at the bourses, shares of Quess Corp rose nearly 3 per cent to Rs 303.75, with its total market capitalization close to Rs 4,500 crore. The stock has been relisted in the 'T' Group which means that intraday buying and selling is not allowed on the stock and circuit filter shall be for 5 per cent on either sides. It will remain in 'T' group for at least 10 trading sessions.

Earlier this month, Quess Corp had announced April 15 as the record date for the spin-off of the two separate business entities. Shareholders holding Quess Corp shares as on the record date shall be determined eligible to receive equity shares of Rs 10 each of both the resultant entities mentioned above.

The equity shares proposed to be allotted by the resulting companies- Digitide Solutions and Bluspring Enterprises- are to be listed with the NSE)and the BSE, subject to the applicable regulations and the necessary regulatory approvals. However the listing date of the demerged entities has not been announced yet but likely to be listed in next two months.

Bengaluru-headquartered Quess Corp had announced the decision to demerge its businesses in February 2024 and it had received the nod from the National Company Law Tribunal (NCLT) for spinning off its businesses into three different entities.