NIIT shares climb 5%, extend gains post corporate action

Shares of NIIT climbed 5 per cent in Friday's trade, in addition to a 5 per cent jump in the previous session, following the corporate action. The stock gained as it traded adjusted of the demerged corporate learning business. Thursday was the record date for the demerger of corporate learning business, which would later get listed on stock exchanges as NIIT Learning Systems.

Recently Chairman and Co-founder of NIIT Group Rajendra S Pawar said NIIT group post demerger emerged as a stronger and more dynamic organisation, unlocking growth and value for its customers, shareholders and stakeholders. NIIT, he said, is poised to realise its true potential through the creation of two independently run businesses with significant growth capital.

NIIT shares rose 4.64 per cent to hit a high of Rs 104.70 on BSE. The composite scheme of arrangement had got effective from May 24. Shareholders of NIIT will get one share of NIIT Learning Systems for each share of NIIT when the latter gets listed on stock exchanges. While NIIT would focus on its skills & careers business, NIIT Learning Systems would take care of corporate learning business.

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Data showed NIIT Learnings Systems reported a profit after tax of Rs 192.20 crore for FY23. It revenue for the year was up 20 per cent at Rs 1,361.80 crore. Ebitda margin for the quarter stood at 23.2 per cent. NIIT Learnings Systems added 12 global managed training services contracts for the year, did two contract expansion and 13 contract extensions.

On the other hand, NIIT's profit (demerged) for the year stood at Rs 3.20 crore. Its revenue rose 36 per cent YoY to Rs 341.30 crore.

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