Quess Corp’s Demerger Triggers Volatile Market Debut For Digitide, Bluspring

Quess Corp’s three-way demerger led to a volatile market debut for the newly listed entities Digitide and Bluspring Enterprises. The move was aimed at simplifying the group’s structure and unlocking value across its matured business verticals.

Digitide listed at Rs 245, marking a 59% jump from its estimated fair value of Rs 154.83. It is currently trading at Rs 240.90, with a market capitalisation of Rs 3,588.19 crore.

Bluspring, on the other hand, opened at Rs 86.95—44% below its estimated value of Rs 154.83—and hit the lower circuit, trading at Rs 82.65. Its market capitalisation stood at Rs 1,231.07 crore.

The initial volatility is being attributed to the lack of prior standalone financial disclosures for the demerged units and uncertainty about their growth trajectories.

Quess Corp, which operates in staffing and workforce solutions, serves over 3,000 clients in more than nine countries and has a workforce exceeding 5.5 lakh. The company’s shares rose 7% to Rs 321 after the demerger cutoff date.

In the March quarter, Quess Corp reported a 9% sequential decline in the top line due to seasonality and sector-specific headwinds in the IT segment. These pressures are expected to persist in the June quarter. Margins for the quarter were below the company’s guidance of 5%.

The demerger was carried out to enable independent operations of the business verticals, which the company said had matured enough to scale on their own. The newly listed entities have distinct operational areas:

• Digitide: Focuses on Business Process Management (BPM), Insurtech, and Human Resources Outsourcing (HRO). Its core strategy is to use technology to improve client productivity and efficiency.

• Bluspring Enterprises: Offers facility management, security services (both manned and technology-led), telecom infrastructure maintenance, and industrial services. It also owns the AI-powered white-collar job portal, foundit.

The structural separation is aimed at sharper management focus, improved capital allocation, and clearer valuation discovery for each unit.

Digitide aims to scale its revenues from over $280 million to $1 billion. It plans to leverage artificial intelligence and next-generation technologies to drive productivity for clients. The company is positioned to benefit from the $200 billion global BPM market.

With operations in 30 countries and delivery centres in Manila and India, Digitide aims to expand its global presence in this segment.

Bluspring plans to tap into opportunities linked to India’s development agenda (Viksit Bharat @2047) and the upcoming 6G rollout by 2030. The company expects to benefit from a rise in outsourcing in the facility management industry, which it projects will grow from 39% to 45% over five years.

Bluspring is targeting 20% year-on-year revenue growth, driven by premiumisation of its services.

The demerger marks a key milestone for Quess Corp’s restructuring. While the listing responses have been mixed, further clarity on valuations is expected after management commentary and detailed financial disclosures from Digitide and Bluspring.