 "Tech Mahindra announces merger of two subsidiaries based in the US")
IT services and consultation company Tech Mahindra has announced the merger of two of its wholly-owned subsidiary companies -- Born Group and Tech Mahindra Americas (TMA) -- to synergize business operations, optimise operational costs, and reduce compliance risk, the company said in a regulatory filing with the Bombay Stock Exchange.
The appointed date of the plan of merger is April 1, 2024.
“A plan of the merger of Born Group Inc, a wholly-owned step-down subsidiary of the company with its parent company - Tech Mahindra Americas (TMA), a wholly-owned material subsidiary of the company, has been approved by the respective companies on March 22,” the announcement said.
Born Group, incorporated in the US in 2011, specialises in providing brand strategy, visual design, brand identity exploration, and more for digital products, mobile apps, and physical products.
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Tech Mahindra Americas (TMA) was started in the US in 1993 and provides computer consulting, programming support services, and IT management & consulting services.
In the financial year 2024, Born registered a turnover of $55.08 million, while TMA's turnover touched $1,201.37 million, according to the company.
The merger plan does not entail any exchange of cash or issuance of new shares, said the company.
“Both the transferor and transferee companies are wholly-owned subsidiaries and hence there will be no cash consideration or issue of new shares involved under the Plan of Merger. The investment of TMA in Born will get cancelled on the merger becoming effective,” read the announcement.
The merger will not impact the shareholding pattern of Tech Mahindra, as it is not a part of the merger, it added.