Mumbai: Tata Consultancy Services Ltd (TCS), India’s top software services exporter, said on Tuesday it has received clearance from the National Stock Exchange Ltd and BSE Ltd to merge subsidiary CMC Ltd with itself.

The approval from the stock exchanges will allow the two companies to file their scheme of amalgamation with the Bombay high court high court for further clearance of the deal.

On 16 October, TCS had informed the exchanges that its board had approved the merger between the two companies, resulting in a 0.6% increase in paid-up share capital.

Under the deal, CMC will be merged with TCS. CMC shareholders would get 79 equity shares of 1 each of TCS for every 100 equity shares of 10 each of CMC. The date for the proposed scheme is 1 April.

In separate communications to CMC and TCS earlier this month, the exchanges said they are granting the no-objection approval to the proposed scheme, which is valid for six months. TCS and CMC would have to file the merger scheme with the high court for further clearance within this period.

Incorporated in 1975, CMC has over 11,000 employees. It was the first company in India to set up a countrywide data network called INDONET, a computer network providing access to major cities in India, way back in 1985. TCS took a controlling stake in CMC in 2001 and fully privatized it three years later.

On Tuesday, shares of TCS gained 0.04% to 2502.80, while shares of CMC Ltd rose 0.58% to 1905, while the benchmark Sensex ended at 29,571.04 points, up 1%.

Close