Talwalkar Better Value Fitness spurted up over 5.5% to Rs.239.55 and continues to remain in the green, with volume rising 1.5 times.

The stock has risen on the back of news that its Board had approved the demerger of its gym business into a separate company, Talwalkar Lifestyles. This company accounted for 86% of Talwalkar Better Value’s total turnover for FY16.

In this demerger, shareholders of Talwalkar Better Value would get one share of Talwalkar Lifestyles for every one share held.

Post the demerger, Talwalkar Better Value will have a 39.99% stake in wholly-owned Talwalkar Lifestyles, which will eventually be listed on the BSE and NSE.