Updated Dec 20, 2024 20:01 IST
Tech Mahindra Merger Udpate: NCLT sanctioned the absorption of Perigord Premedia (India) Private Limited, Perigord Data Solutions (India) Private Limited, Tech Mahindra Cerium Private Limited and Thirdware Solution Limited with Tech Mahindra.
Tech Mahindra, in a regulatory filing today, informed that NCLT, Mumbai, has sanctioned the Scheme of Merger by Absorption of Perigord Premedia (India) Private Limited, Perigord Data Solutions (India) Private Limited, Tech Mahindra Cerium Private Limited and Thirdware Solution Limited, wholly-owned subsidiaries of the Company with the Company.
“…National Company Law Tribunal, Mumbai Bench (“NCLT”) has, basis its hearing held on December 11, 2024 and vide order pronounced on December 19, 2024 sanctioned the Scheme of Merger by Absorption of Perigord Premedia (India) Private Limited (“PPIPL”), Perigord Data Solutions (India) Private Limited (“PDSIPL), Tech Mahindra Cerium Private Limited (“TMCPL”) and Thirdware Solution Limited (“TSL”), wholly-owned subsidiaries of the Company (“Transferor Companies”) with the Company (“Transferee Company”) and their respective shareholders under the provisions of Sections 230 to 232 and other applicable provisions of the Companies Act, 2013 (“Act”) read with the Rules framed thereunder…,” said the company in the regulatory filing.
PPIPL engaged in the business of consultancy, advisory and all related support services in all areas of information technology including computer hardware, consumer hardware, automation software, system integration, software and solutions and system for broadcast and media industry etc.
PDSIPL engaged in the business of consultancy, advisory and all related support services in all areas of information technology including computer hardware, consumer hardware, automation software, system integration, software solutions and systems for life sciences industry, broadcast and media industry etc.
TMCPL is currently engaged in the business of offering design services in VLSI/ASIC, Embedded Software, Finware, Hardware Design and Software Applications, to carry on the business of field-programmable gate array development and application specific integrated circuit front-end design in functional analysis.
Stating the rationale behind the merger, Tech Mahindra said, “In order to consolidate and effectively manage the business of the Transferor Companies and Transferee Company in a single entity, which will provide several benefits including synergy, economies of scale, attain efficiencies and cost competitiveness, it is intended that the Transferor Companies be merged with Transferee Company, which would inter alia have following benefits:
The Transferor Companies are wholly owned subsidiaries of the Transferee Company, so merger will help to consolidate the entities.
2. The merger will lead to greater efficiency in the overall combined business including economies of scale, efficiency of operations, operational rationalization, organizational efficiency, cash flow management and unfettered access to cash flow generated by the combined business which can be deployed more effectively for the purpose of development of businesses of combined entity and their growth opportunities, eliminate inter corporate dependencies, minimize administrative compliances and to maximize shareholder value.
3. The merger will result in reduction in the overheads including administrative, managerial and other expenditure, and optimal utilization of resources by elimination, if unnecessary duplication of activities and related costs. It will also result in a reduction in the multiplicity of legal and regulatory compliances required at present to be separately carried out by the Transferor Companies and the Transferee Company.
4. The merger would motivate employees of the Transferor Companies by providing better opportunities to scale up their performance with a larger corporate entity having large revenue base, resources, assets base etc. which will boost employee morale and provide to better corporate performance ultimately enhancing shareholder value.”
Tech Mahindra Share Price
Shares of Tech Mahindra on Friday, Decemeber 20, closed at Rs 1685.20, down 3.97 per cent from the previous close of Rs 1754.90, according to the BSE.
End of article
