Quess Corp Shares: Despite a sharp market rally on Tuesday, shares of Quess Corp declined over 50% on bourses. However, this fall is not due to bearish sentiment or any kind of investor panic but a structural change in the company.
The shares of Quess Corp settled at around Rs 296 on the Bombay Stock Exchange, marking a staggering double-digit decline from its previous closing of Rs 605. Meanwhile, on the National Stock Exchange, the stock settled at Rs 298, down by over 51%.
Despite a sharp rally in the broader market, investors were surprised by the sharp decline in the company's share price, which was simply the result of a business spin-off and not any negative news.
Why Quess Corp shares crashed?
The company has demerged into three separate companies. As of now, only Quess Corp remains listed on the exchanges, whereas the other two new entities (Digitide Solutions and Bluspring Enterprises) will be listed later. The sharp fall witnessed in the share price was largely because the total value of the business took a hit after the demerger. This drop doesn't indicate a loss in the company's value. It just means that a big chunk of it now belongs to the two new companies.
The stock has been moved to the 'T' group category on the stock exchange, wherein intraday trading is not allowed.
What about the other two entities?
The other two companies, Digitide Solutions and Bluspring Enterprises, will be listed on the bourses in the upcoming months. Existing shareholders will receive equity shares worth Rs 10 each in the new companies, once all necessary regulatory approvals are in place.
The demerger plan was initially announced last year, February 2024. Post which, Quess Corp received all the necessary approvals from the NCLT (National Company Law Tribunal).
