The Bombay high court has approved the scheme of Blue Star Limited (BSL) for the spin-off of its International Software division into a separate company, Blue Star Infotech Limited (BSIL).

Under the approved scheme, the assets of the software division will be transferred to the new company at the book value, according to a company press release.

Shareholders of Blue Star Ltd will get one share of BSIL and three shares of BSL in place of every four shares of BSL held by them. Consequently, the share capital of Blue Star Ltd will be reduced by 25 per cent, the press release said.