Tech Mahindra rose 1.13% to Rs 1,710 at 9:44 IST on BSE after the company said its board approved the amalgamation of Mahindra Engineering Services with the company.
The announcement was made during trading hours today, 29 November 2013.
Meanwhile, the BSE Sensex was up 232.18 points, or 1.13%, to 20,767.09.
On BSE, 22,000 shares were traded in the counter compared with average volume of 1.66 lakh shares in the past one quarter.
The stock hit a high of Rs 1,720.20 and a low of Rs 1,691.20 so far during the day. The stock hit a 52-week high of Rs 1,762.45 on 20 November 2013. The stock hit a 52-week low of Rs 865.25 on 7 December 2012.
The stock had outperformed the market over the past one month till 28 November 2013, rising 11.64% compared with the Sensex's 0.17% fall. The scrip had also outperformed the market in past one quarter, rising 23.39% as against Sensex's 14.11% rise.
The large-cap IT company has an equity capital of Rs 233.04 crore. Face value per share is Rs 10.
As per the amalgamation scheme approved by the Tech Mahindra's board, shareholders of Mahindra Engineering Services (MES) will receive five shares of Tech Mahindra for every 12 shares of MES.
The appointed date of the scheme would be 1 April 2013. All assets and liabilities of MESL are to be transferred and vested in Tech Mahindra.
On a consolidated basis, Tech Mahindra's net profit rose 4.7% to Rs 718 crore on 16.3% increase in revenues to Rs 4771 crore in Q2 September 2013 over Q1 June 2013. Operating profit (EBITDA) jumped 28.5% at Rs 1111 crore in Q2 September 2013 over Q1 June 2013.
Debt was at Rs 335 crore as of 30 September 2013; down by Rs 412 crore during the quarter. Cash and cash equivalent stood at Rs 3273 crore as of 30 September 2013.
Tech Mahindra is a leading provider of solutions and services to the telecommunications industry, majority stake owned by Mahindra & Mahindra. The company serves telecom service providers, equipment manufacturers, software vendors and systems integrators.
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