The stock was trading higher following the benefits likely to accrue to it following the approval of a decision. The stock was last trading at Rs 1701 on the National Stock Exchange.
The exchange ration recommended to the board is 5 shares of Tech Mahindra (face value of Rs 10) for every 12 shares of Mahindra Engineering Services. the merger is likely to take 8-9 months, given the regulatory process involved.
The deal between the two companies is likely to offer benefits to Tech Mahindra which would now be able to strengthen domain expertise in certain areas.
Mahindra Engineering Services is a global engineering consultancy and service provider catering to automotive, aerospace, defensive and manufacturing industries. The company currently has more then 1300 employees and revenues of Rs 250 crores.
Karthikeyan Natarajan, Global Head, Integrated Engineering Services at Tech Mahindra said, "The merger strengthens the existing services portfolio, enhances presence in the United States, and Germany, provides scale and brings in new clients for further expansion. Our innovation and product development expertise synergising with the MES domain expertise enables the most comprehensive product solution portfolio for our customers and the world at large."
Tech Mahindra is a leading provider of solutions and services in the Information, Communications & Technology (ICT) industry serving over 500 global customers, including Fortune 500 companies. A USD 2.63 billion company with over 83,000 professionals, its proven global delivery models, distinctive IT skills and decades of domain expertise help clients realize their business aspirations.
The company is a part of the USD 16.2 billion Mahindra Group.