Mastek announced that the board of directors of the company has approved the demerger of the insurance products and services business of Mastek  into Minefields Computers Private, to be renamed as Majesco followed by transfer of the offshore insurance operations by Majesco to Majesco Software and Solutions India Private, a wholly owned subsidiary of MajescoMastek Insurance Software and Solutions Inc in terms of a Scheme of Arrangement under Sections 391-394 of the companies act, 1956.

The scheme of arrangement will be subject to various statutory approvals, including those from the shareholders and the lenders/creditors of Mastek.

Shares of the company gained Rs 28.55, or 12.17%, to trade at Rs 263.05. The total volume of shares traded was 375,895 at the BSE (11.16 a.m., Monday).