Tech Mahindra to merge two wholly-owned subsidiaries

Tech Mahindra [BSE:TECHM] has announced a plan to merge two of its wholly-owned subsidiaries: Tech Mahindra Cerium Systems Inc. (TMCS) and Tech Mahindra (Americas) Inc. (TMA). Approved on February 17, 2025, the merger aims to reduce the number of entities in the group and optimize operational costs. TMCS, a design services provider with a turnover of USD 2.7 million, will be absorbed by TMA, a larger IT services provider with a turnover of USD 1,153.28 million. While the merger is between related parties, it is exempt under SEBI regulations. The investment of the Company in TMCS will get cancelled on the merger becoming effective. The effective date is set for February 20, 2025, subject to regulatory approvals.