Maintain NEUTRAL with TP of Rs 195, 12x Dec-19E EPS. KPIT Tech has re-structured its business to create two entities of IT services and ER&D; (separate listing), by first merging with Birlasoft to create ~USD 700mn rev entity, and later demerging the ER&D; segment (USD 200mn rev) from it. Despite value unlocking by demerging the ER&D; business (higher growth/margin and better valuations), the deal is EPS neutral (but, 15% accretive assuming full acceptance in open offer).