The board of directors of Tech Mahindra has approved the merger by Absorption of 3 subsidiaries of the firm and their respective shareholders. This announcement came alongside the company’s September quarter results.
“The Board of Directors of the Company at its Meeting held on 25th October, 2023, subject to requisite approved the Scheme of Merger by Absorption of Perigord Premedia (India) Private Limited and Perigord Data Solutions (India) Private Limited and Tech Mahindra Cerium Private Limited, wholly owned subsidiaries of the Company, with the Company and their respective shareholders (“Scheme”) under section 230 to 232 and other applicable provisions of the Companies Act, 2013,” it said in an exchange filing.
It also informed that the Appointed Date of the Scheme would be April 1, 2024 or such other date as may be directed or approved by the jurisdictional National Company Law Tribunal (“NCLT”) or any other appropriate authority.
Further, the entire assets and liabilities of these 3 subsidiaries will be transferred to and recorded by Tech Mahindra at their carrying values. All inter-company balances and agreements, if any, between Transferor Companies and Tech Mahindra shall come to an end and corresponding effect shall be given in the books of accounts and records of the Company for the reduction of any assets or liabilities, stated the filing.
Also, the entire share capital of the Transferor Companies is held by Tech Mahindra(directly and jointly with the nominee shareholders). Upon the Scheme becoming effective, no shares of Tech Mahindra shall be allotted in lieu or exchange of the holding of the Company in the Transferor Companies and accordingly, equity shares held in the Transferor Companies shall stand cancelled on the Effective Date without any further act/instrument or deed, added the filing.
IT major Tech Mahindra reported a 61.1 per cent year-on-year (YoY) fall in Q2FY24 consolidated net profit at ₹505.3 crore versus ₹1,299.2 crore. Its consolidated revenue from operations during the first quarter of the current fiscal stood at ₹13,159 crore, reporting a rise of 3.5 per cent, compared to ₹12,707 crore in the year-ago period.
On the operating front, the company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) in the June quarter declined 28.8 per cent year-on-year to ₹1,338 crore from ₹1,880 crore in the corresponding quarter last year.
It also announced an interim dividend of ₹12 per equity share of face value of ₹5 each.