Following the reorganization plan announced during Q3 FY22 results in Jan 2022, the Board of NIIT Limited has announced that the Corporate Learning Business undertaking has been transferred to NIIT Learning Systems Limited (NLSL) upon the Composite Scheme of Arrangement becoming effective as on May 24, 2023. NIIT Limited will continue to focus on and operate the Skills & Careers business, whereas NLSL will operate the Corporate Learning Business.
Consequent to the demerger, each shareholder of NIIT Limited would be allotted one share of NLSL for each NIIT Limited held by them on the Record Date, which has been fixed as June 8, 2023. Subsequently, NLSL would also get listed on BSE/NSE post requisite regulatory approvals. This demerger recognizes each business’s distinct market dynamics, customer segments, product offerings, and growth trajectories. It provides sharper focus, simplified decision-making, focused allocation of growth capital and enhanced agility, creating significant value for stakeholders in each of these businesses.
Speaking on the demerger, Co-founder & Chairman of NIIT Group, Rajendra Singh Pawar, said:
We are excited about the profound impact we aim to make in the realm of global talent development”.
NIIT Ltd reaffirms its commitment to talent transformation to equip the workforce to cope with the rapidly changing environment; it will enlarge its ambit to include a broader range of Industry sectors undergoing rapid transformation. The company will build further on its scalable industry-grade NIIT Digital platform, developed and refined over the last two decades, and step-up innovation in immersive and hybrid learning models using multidisciplinary technologies.
With Rajendra S Pawar becoming Executive Chairperson of NIIT, all three Founders have taken up executive roles in NIIT Limited to steer the company during this transformation phase. The Skills & Careers business landscape is undergoing massive disruption, with radical shifts in business models coupled with near-term uncertainty in the environment. The Founders and the strong and tenured management team bring significant experience and expertise in the business, having steered the company through similar situations over four decades.
NIIT Limited Board has been strengthened over the last two years with the appointment of Avani Davda, Founding CEO-Tata Starbucks, Strategic Advisor at Bain & Company and Ravindra Babu Garikipati, Ex-Chief Technology Officer at Flipkart, Independent Director at Axis Asset Management. Recently, Srikanth Velamakanni, Founder and CEO of Fractal AI, India’s first unicorn in AI and a prominent provider of Artificial Intelligence Solutions to Fortune 500 companies, has joined the board as an Independent Director.
Co-Founder, Vice Chairman & MD of NIIT Group, Vijay K Thadani, added:
This strategic milestone of creating two focused companies marks a pivotal moment in our growth journey.
NIIT Learning Systems Limited (NLSL) offers Managed Training Services to Fortune 1000 corporations across North America and Europe. The business has over 80 global customers and services in over 30 countries.
The Board of NLSL appointed Sapnesh Lalla as CEO and Executive Director. He will focus on accelerating growth for the company and creating more value for its customers. The Learning Outsourcing market is underpenetrated and offers significant headroom for growth. Given NLSL’s track record and strong balance sheet, there is a unique opportunity to become a global leader.
Sapnesh Lalla, CEO and Executive Director NLSL, commented:
The demerger empowers the newly created NIIT Learning Systems Ltd. to sharply focus its management team and capital on the significant opportunities emerging in the Learning Outsourcing space and achieve global market leadership”.
The NIIT Group is a leading digital talent development organization and a leading provider of managed training services engaged in building skilled human capital and enhancing workforce talent worldwide. With a footprint in over 30 countries, NIIT Group delivers learning interventions that create superior outcomes. The group comprises NIIT Limited (NIIT) and NIIT Learning Systems Limited (NIIT MTS). NIIT Ltd. delivers a diverse range of learning and talent development programs to millions of individual and corporate learners in futuristic domains through its various businesses, including NIIT Digital, StackRoute, RPS Consulting, Institute of Finance Banking & Insurance (IFBI), TPaaS and Sales & Service Excellence (SSE).
As newer models of digital, hybrid and remote learning become mainstream, the robust NIIT Digital platform enables specific learning outcomes for corporate and individual learners seamlessly. It provides a digital environment for improving learning effectiveness and efficiency. Committed to its mission to deep-skill the country’s youth, NIIT Digital offers expertise and instructor-led tech programs and follows through with placement assurance based to transform the learners’ lives truly.