NXTDigital demerger has a value unlocking with a 20% gain in share price today!

As per the swap ratio recommended by two independent valuers, each shareholder of NxtDigital holding 63 equity shares will receive 20 shares (post bonus) of Hinduja Global Solutions.  

The board of directors of NxtDigital approved the proposed scheme of arrangement for demerger between the company and Hinduja Global Solutions (HGSL) and their respective shareholders for the demerger of the 'Digital, Media & Communication Business' undertaking of Nxt Digital into HGSL on a going concern basis, the company said in a regulatory filing.

As per the swap ratio recommended by two independent valuers, each shareholder of NxtDigital holding 63 equity shares will receive 20 shares (post bonus) of Hinduja Global Solutions, the company said.

Owing to this update, shares of NxtDigital rallied nearly 20% to Rs 479, in the morning trading session. The scrip closed at Rs 400.05 yesterday. On the other hand, shares of Hinduja Global Solutions dropped over 1.3% to Rs 2,709.20, in the afternoon session.

These new share allotments in Hinduja Global Solutions will be over and above the existing shares of NxtDigital held by the shareholders, thus retaining their existing shareholding in the latter one.

NXTDigital is engaged in the distribution of TV signals both through Cable and Satellite and also provides broadband services through its subsidiary ONEOTT Intertainment Limited (OIL). The company’s Digital Cable television platform delivers over 750+ channels across 100+ cities/towns and the HITS services are available in India across 1500+ cities/towns. It also has a network of over 9,000 franchisees across the country. It designed a unique delivery model known as COPE (Cable Operator Premises Equipment) to enable LCOs to go digital anywhere in India in just 24 hours.

It will leverage technology and partnerships to expand the business. It aims to grow its serviced subscriber base (expected to cross 10 million, including onboarding of more than 5 million Managed Service customers).

Also read: Closing Bell: Nifty settles above 17300 in a volatile trading session