Datamatics to demerge and separately list its subsidiary Lumina Datamatics

Deepthi | Myequity news | Date : 14-12-2018 21:21:00 IST

The Board of Directors of Datamatics Global Services Limited (DGSL) and Lumina Datamatics Limited (Lumina) today, approved a proposal to merge the two Companies into DGSL. The merged Company would then be vertically split into two Companies, namely, Datamatics Global Services Ltd. and LDR E-Retail Ltd. Thus, the shareholders of DGSL will have an identical shareholding pattern in both DGSL and LDR E-Retail Ltd. The latter will be renamed as Lumina Datamatics Limited.

The board was of the view that the business of two companies serve completely different market segments and have different offerings. The de-merger will allow the managements of the each Company to focus and pursue growth strategies tailored specific for the segments they serve. The de- merger will also give direct visibility of the opportunity and assets for both the companies which will further unlock value for the shareholders by way of separate listing.

DGSL is a Technology and BPM services company that builds intelligent solutions enabling data-driven businesses to digitally transform themselves through Robotics, Artificial Intelligence, Cloud, Mobility and Advanced Analytics.

Lumina is engaged in the business of providing e-retail and digital publishing services in content development, design and composition, content transformation, e-books and new media, rights and permissions, QA services, project management, consulting and information services, publishing and e-retail software development and implementation, digital assets management and storage, adaptive assessment system, site merchandising, market intelligence and e-Commerce data publishing & e-retail solutions to clients. Lumina is already one of the 5 largest Companies in this field.

The consolidated income of DGSL for FY 17-18 was Rs.935 crores and FY19H1 was Rs.552 crores. The consolidated income of Lumina for FY 17-18 was Rs.237 crores and FY19H1 was Rs.130 crores. The consolidated income of DGSL (excluding Lumina) for FY 17-18 was Rs.698 crores and FY19H1 was Rs.423 crores.

Mr. Rahul Kanodia, Vice – Chairman & CEO, Datamatics said, that “Both the businesses are witnessing steady growth and de-merger will further help us to bring focus, sharpen our future strategies and unlock value for all stakeholders.”

Katalyst Advisors LLP, headed by Mr. Ketan Dalal is the transaction advisor to DGSL, Lumina and LDR.

About Datamatics Global Services

Datamatics provides Intelligent Solutions for data driven businesses to increase productivity and enhance customer experience. The company’s portfolio of service offerings spans across Information Technology Services, Business Process Management, Engineering Services and Big Data & Analytics all powered by Artificial Intelligence. It has established products in Robotics Process Automation, Advanced Analytics, Business Intelligence and Automated Fare Collection.

More from Myequity