The Bombay High Court has approved the scheme of Arrangement of Blue Star Limited (BSL) for the spin-off of its International Software division into a separate company, Blue Star Infotech Limited (BSIL). The scheme will be effective retrospectively from October 1, 1998. Under the approved scheme the assets of the Software Division will be transferred to the new company at the book value. Shareholders of Blue Star Limited 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 Limited will be reduced by 25%.