KPIT Technologies has been having a roller coaster ride today. From being amongst the top losers on the BSE, going down 4% to Rs.200; it bounced back into the red, going up 4% to Rs.217.

The stock went down after the company announced its open offer price at Rs.182, lower than yesterday’s close of Rs.209.75.

The company announced that the KPIT promoters, together with CK Birla Group owned Birlasoft, is launching an open offer for the minority shareholders of KPIT. KPIT and the CK Birla Group owned Birlasoft, will work closely to first merge Birlasoft into KPIT and later split the combined entity of KPIT and Birlasoft into two public companies.

At the conclusion of the deal, two new companies will be created. The new KPIT Technologies will be a USD 200+ million focused Engineering Services company that will be created by tapping into the current Engineering business of KPIT to create a global leader in Automotive Engineering and Mobility Solutions.

The new ‘Birlasoft’ will be a USD 500+ million Digital Business IT Services company that will be created by combining the KPIT ITSS business and the current Birlasoft creating a new leader in the mid-tier IT services space, which will also be called Birlasoft.