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Quess Corp to split into three listed companies

Bengaluru: Fairfax Financial Holdings-controlled Quess Corporation Said it would be split into three separate listed entities. Focus will be on Quess Corp workforce management, Digitide Solutions It has BPM solutions, insurtech and HRO businesses, and BlueSpring Enterprises has facilities management and industrial services.
demerger Enhances strategic focus to accelerate profitable growth, optimal capital allocation strategy for each entity to invest behind its strategic priorities and the ability to create an attractive investor proposition for each entity.
Once the process is complete, all shareholders will receive one additional share for each new company, for each share they hold in Quess Corp. This demerger process is expected to take between 12-15 months. “A one-size-fits-all strategy does not fit all. The decentralized structure at Quess has enabled a pathway for three separate entities. Therefore, we found it necessary to focus more on each company and provide a productive investment thesis to our investors so that they are able to make their choice and not get an average of everything. No IPO is necessary to list the entities as we will transfer the capital present in the main company to the new companies,” said Ajit Isaac, chairman of Quess Corp. The unit currently has a workforce of 440,000, which includes 6,000 people. technical sector, and 6,000 are working outside India.
Isaac is confident that the structural changes will help in a big way towards the formal labor pool. India has a labor force of approximately 563 million, which is undergoing a rapid formalization process. Around 72 million new PF customers and 95 million new ESIC customers have been added since 2017. The gig workforce is projected to expand to 23.5 million workers by 2029-30, representing a three-fold increase by the end of the decade.
Isaac said the company expects to end the 2023-24 fiscal year with revenues of $2 billion. “If we take the last eight years, the revenue CAGR in our economy has been around 20% growing between 4.5%-6% in the last five years. Over the next three years, I think we can do about 16% to 17%.”
“Each of these institutions will be a market-leading player with the ability to take advantage of the opportunities that arise through their new focus,” said Prem Vats, Chairman and CEO of Fairfax Financial Holdings. “Since we invested in Quess Corp in 2013, the company has become one of the largest domestic employers in India and has the potential to grow into a significant business services player globally.”
Isaac said his HR business runs payroll systems for around 1.3 million pay-slips every month, making it one of the largest payroll systems in India. “We have an insurer technology business, where we underwrite over $3 billion of insurance premiums in the property and casualty sector. And our customer lifecycle management handles 500 million calls per year. So the Digitide business, which is about $300 million, has the potential to become a $1 billion business in the next three to five years,” he said.

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