New Delhi : Training and skills development firm NIIT today said it will buy out the 10 per cent share held by NSDC in NIIT Yuva Jyoti (NYJ) for Rs 2.85 crore in cash.
NIIT has agreed to acquire 23,13,240 equity shares of NIIT Yuva Jyoti, constituting 10 per cent of the paid-up share capital of NYJ, from National Skill Development Corporation (NSDC) for an aggregate cash consideration of Rs 2,85,08,139, NIIT said in a BSE filing.
NIIT holds 90 per cent stake in NYJ and post the acquisition, NYJ will become a wholly-owned subsidiary of the city-based firm.
“This is in line with the revised working arrangement agreed between NYJ and NSDC. NIIT’s Digital Transformation initiative using an asset light strategy has resulted in lower project costs and NYJL will therefore not be seeking further financial assistance from NSDC for this venture,” it added.
NIIT and NYJ will continue to partner with NSDC to develop skilled workforce across multiple sectors.
The turnover of NYJ for last three years stood at Rs 3.22 crore (March 2014), Rs 2.04 crore (March 2015) and Rs 12.21 crore (March 2016). It posted a net loss of Rs 4.24 crore for the financial year ended March 31, 2016.
In September 2011, NIIT had formed a joint venture with NSDC to train around 70 lakh youth by 2022, offering job-oriented training in semi-urban and rural areas.
Under the agreement, NSDC participated in the JV via a mix of loans and equity. The total project outlay estimated at that time was about Rs 377 crore for the first four years.
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