NIIT Learning Systems falls 4% on listing post NIIT demerger

NIIT Learning Systems made its D-Street debut on Tuesday at Rs 366 on the NSE following its demerger with NIIT. The shares fell nearly 4% to the day’s low of Rs 352 but recouped most losses as the session progressed. At around noon, the stock was trading 0.8% lower.

NIIT Learning Systems was demerged from NIIT on May 24, 2023. The stock value of the combined entity stood at Rs 405 as on August 7. However, the post demerger share price of NIIT was Rs 92. This makes the spin-off price for NIIT Learning Systems to be Rs 313 (the price of the combined entity minus the share price of NIIT).

NIIT shares fell 3% to the day's low of Rs 82.80.

Consequent to the demerger, each shareholder of NIIT has been allotted one share of NIIT Learning Systems for every NIIT share they held on the record date of June 8, 2023, according to the company's filing.

"This demerger recognises the distinct opportunities, geographies and market dynamics, customer segments, product offerings, and growth trajectories of the Managed Training Services (MTS) business. It will provide the business sharper focus, simplified decision-making, focused allocation of growth capital, and enhanced agility," the filing said.

NIIT Learning Systems offers MTS to corporations across North America and Europe, with 80 customers in over 30 countries, according to the company's filing. Its services help companies transform their learning ecosystems with specialised solutions, including immersive learning, customer education, and talent pipeline as a service, among others.

Rajendra Singh Pawar is the co-founder of NIIT and the chairperson of NIIT Learning Systems, while Vijay K Thadani is the co-founder of NIIT and vice chairman & managing director of NIIT Learning Systems. Both Pawar and Thadani were present at the time of the NIIT Learning's listing with other key officials.

“We are proud and thrilled to present our newly listed entity – ‘NIIT MTS’. The MTS Business has grown to be in the Top 5 globally in learning outsourcing. The global corporate training market is currently underpenetrated, and NIIT MTS has an opportunity to become a leader in this space,” said a company statement quoting Pawar.

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