Shares of Mastek fell 67.4 per cent at its day's low of Rs 142.5, from Thursday's close of Rs 437.
Under a corporate restructuring, Mastek hived off its insurance products and services business into Minefields Computers Private limited, which will be followed by sale of offshore insurance operations by Minefields Computers Private limited to Majesco Software Solutions India Private Ltd.
The insurance products and services business of Mastek includes all assets and liabilities pertaining to the insurance products and services business including the India and offshore insurance operations.
Minefields Computers Private limited will be renamed to "Majesco" post completion of demerger. Majesco will constitute the insurance products and services business of Mastek and Mastek will continue to hold the solutions business only.
Faris Kazani, managing director at Majesco told NDTV that the revenue from the insurance products and services business will be around $105 million. (Watch video)
June 15 being the record date for this scheme of arrangement, those shareholders having shares of Mastek in their demat account on June 15, will get one share of the demerged insurance venture Majesco for every one share of Mastek (1:1).
"We will be completing the allotment of shares of Majesco in another 4-5 days, also we will apply to the stock exchanges for the listing approval. This process will take roughly 45-60 days. Hopefully we will be able to list Majesco on the exchanges by first week of August," said Mr Kazani.
Shares of Mastek ended 65.98 per cent lower at Rs 149 apiece. Analysts say the fair value of demerged Mastek shares will be around Rs 175 per share.
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