Quess Corp Split: Streamlining Operations into Three Listed Entities

19 Feb, 2024

Quess Corp Split: Streamlining Operations into Three Listed Entities

Fairfax Financial Holdings-controlled Quess Corp has announced a strategic demerger into three distinct entities, each to be listed separately. The first, Quess Corp, will concentrate on workforce management, while Digitise Solutions will house BPM solutions, insurtech, and HRO services. Blueprint Enterprises will focus on facility management and industrial services. This move aims to sharpen strategic focus, optimise capital allocation, and enhance investor proposition for each entity.

Upon completion, existing Quess Corp shareholders will receive one additional share for each share held. The demerger process is expected to span 12-15 months. Ajit Isaac, Quess Corp's chairman, emphasised the need for tailored strategies, citing the diverse needs of the demerged entities. The company, boasting a workforce of 440,000, anticipates benefiting from India's formalisation of labour.

Isaac projects Quess Corp's revenue for 2023-24 to reach $2 billion, with a promising growth trajectory. Prem Watsa, Fairfax Financial Holdings' chairman and CEO, foresees each entity becoming a market leader in its domain.

Quess Corp S current operations, including HR services and insurer tech, exhibit substantial scale and growth potential. Isaac envisions Digitise Solutions evolving into a billion-dollar business within the next few years, leveraging its existing capabilities.The demerger signals a strategic shift for Quess Corp, positioning its entities for targeted growth and market leadership in their respective sectors.