Mastek Shares Surge Over 50% in 8 Days
Mastek shares surged as much as 20 per cent on Friday, extending its rally to the eighth day. Mastek has risen nearly over 50 per cent during this period.
The shares of the IT company had plunged nearly 66 per cent on June 12 as June 15 was the record date for allotment of shares of its demerged insurance venture Majesco.
Analysts say the demerger has the potential of re-rating of both Mastek and Majesco. "In our view, the corporate action is likely to enhance the overall valuation of the company," IndiaNivesh Securities said in a recent report.
According to the brokerage, the fair value of Majesco is at Rs.549. Majesco shares are likely to get listed on Indian exchanges in August.
(Read: Majesco Share Listing Likely In August)
Under the corporate restructuring, Mastek had hived off its insurance products and services business into Majesco Software Solutions. Mastek will hold the solutions business. Mastek shareholders will get one share of the demerged insurance venture Majesco for every one share of Mastek.
In another development, Mastek announced the merger of US-based Cover-All Technologies with Majesco. The shares of Majesco are set to be traded on the NYSE from June 29, 2015.
At 12:19 p.m., shares of Mastek were up 14 per cent to Rs 201 as compared to 0.55 per cent fall in Sensex.
