Quess Corp witnessed its shares rise by as much as 16% to a fresh 52-week high during the trading session on February 19 after the business services company announced receiving its board’s approval for its demerger plan on Friday.

Quess Corp announced in an exchange filing that on Friday, its Board of Directors had approved a scheme of arrangement wherein it will split into three separate entities post the demerger, namely Quess Corp Ltd, Digitide Solutions Ltd and Bluspring Enterprises Ltd, to reorganise and separate its business portfolio.

As per the demerger scheme, Quess Corp will retain the workforce management, Digitide Solutions will take over the business process management, insurtech and human resource outsourcing businesses, and Bluspring Enterprises will manage the facility management, industrial services and investments.

The demerger process is expected to take between 12 and 15 months to achieve regulatory clearances. After the demerger, the company’s shareholders will receive one additional share in each new company for every Quess Corps share they currently hold.

The company added in the filing that the demerger will help improve customer value proposition, unlock significant long-term valuation and create more value for shareholders. It aims to achieve this by focusing on management, making clearer capital allocation choices and providing flexibility to investors, strategic partners, lenders and stakeholders to participate in some or all of these distinct businesses.

At 2:10 pm, Quess shares were trading at Rs 545.65, 8.83% higher than its previous close on the National Stock Exchange (NSE).