Navneet Education Ltd - Strategic Business Restructuring to Rationalize Ed-Tech Business Vertical with Publication Business

Navneet Education Limited (NEL) one of the largest educational syllabus-based supplementary content provider today announced that its Board of Directors has approved Composite Scheme of Arrangement* for amalgamation of Genext Students Private Limited and demerging of Edtech business of Navneet Futuretech Limited into Navneet Education Limited. This scheme is aimed at rationalizing the group structure and achieving better synergies within the two businesses i.e. Publication and Edtech businesses. This strategic approach aligns seamlessly with our vision to offer phygital education solutions enabling the expansion of both our publication and digital product offerings. Simultaneously, this approach facilitates cost rationalization by utilizing existing NEL workforce also and resources to serve both product lines.

Commenting on the outcome, Mr. Gnanesh (Sunil) D Gala, Managing Director, Navneet Education Limited said, "Todays strategic business restructuring decision is in line with our vision to provide the best educational solutions to the students and schools.

We strongly believe that the future of the Company's Ed-Tech business is intricately connected with bundling the Ed-tech offerings with the publishing book business. This strategic approach aligns with the company's broader vision of providing a seamless roadmap for the growth and diversification of both its legacy publication business and innovative digital product offerings under Ed-tech vertical.

In essence, this strategy recognizes synergy between the Ed-Tech offerings and book publishing business which will be the key to unlocking the future of education and thus Navneet. It not only enables the company to broaden its product portfolio but also ensures cost-optimization in a resource-efficient manner, positioning the company at the forefront of the evolving educational landscape. The Company will harness the full potential of its pre-existing NEL workforce also and leverage its established resources to offer a content via a combined (books + digital medium) solution. This will efficiently enhance the business prospects for the both books and digital medium solutions. We believe this will help us to curtail the losses that both Genext and Navneet Futuretech are currently experiencing.

The Company will continue to judiciously invest in the segment and adapt to its evolving demands. We are confident that our efforts will lead to further growth and success in serving the needs of the education ecosystem."

Shares of Navneet Education Limited was last trading in BSE at Rs. 154.20 as compared to the previous close of Rs. 156.10. The total number of shares traded during the day was 35986 in over 825 trades.

The stock hit an intraday high of Rs. 157.95 and intraday low of 153.65. The net turnover during the day was Rs. 5584844.00.

Source : Equity Bulls

Keywords

NavneetEducation INE060A01024 Merger GenextStudents Demrger EdtechBusiness NavneetFuturetech