On March 4, 2024, the National Company Law Tribunal’s Bangalore bench delivered a significant endorsement for Quess Corp Limited, heralding the approval of their Composite Scheme of Arrangement. This strategic decision will lead to the formation of three publicly traded companies, marking a transformative moment for India’s premier business services provider.

With this demerger, Quess Corp will maintain its status as the country’s leading workforce management firm, boasting a workforce of over 500,000 employees spread across nine nations. The restructuring will see the emergence of two additional distinct entities, expanding the company’s operational landscape and potential.

Overview of the Newly Formed Entities

The demerger has resulted in the creation of Digitide Solutions and Bluspring Enterprises.

• Digitide Solutions: This company will deliver a diverse range of services, including Business Process Management (BPM), Insurtech, and Human Resource Outsourcing (HRO). It operates in 30 countries with delivery centers located in India and Manila, positioning itself to harness burgeoning BPM prospects across various sectors. Utilizing AI-driven technology, Digitide will empower businesses to convert data into actionable insights, enhancing automation and scalability.

• Bluspring Enterprises: Focused on infrastructure services, this entity will specialize in Facility Management, Food Services, Security Services, and the maintenance of Industrial and Telecom Infrastructure. Additionally, it will encompass foundit, an innovative AI-powered job portal catering to white-collar professionals.

Shareholder Advantages Post-Demerger

Quess Corp is committed to ensuring that its shareholders reap the benefits of this strategic move. According to the company’s announcement, shareholders of record will receive one equity share in each of the new companies—Digitide Solutions and Bluspring Enterprises—for every share they hold in Quess Corp. This initiative aims to enhance value for investors while enabling each entity to pursue its unique growth trajectories.

Timeline and Future Outlook

The decision to initiate this demerger was made public in February 2024, with Quess Corp emphasizing its thorough preparation for the transition. Ajit Isaac, the Chairman of Quess Corp Ltd, remarked, “The approval from the NCLT, Bangalore bench signifies a pivotal step in our mission to establish three focused and independent listed entities. This initiative aims to boost operational efficiency, unlock shareholder value, and empower each entity to follow a distinct growth strategy in an ever-evolving business environment.”

This demerger not only reflects Quess Corp’s strategic vision but also positions it favorably for future growth and innovation in the competitive business services landscape. As each entity launches, stakeholders can anticipate exciting developments that promise to reshape the industry.