NEW DELHI :
IT company HCL Technologies said its board has approved the scheme for merger of four of its subsidiaries, including HCL Comnet, with itself.
The scheme was approved by the board of directors of the subsidiaries in their respective meetings Friday, HCL Tech said in a regulatory filing.
The proposal to merge HCL Comnet, HCL Eagle, HCL Technologies Solutions and Concept2silicon Systems into HCL Technologies was approved by the latter's board on Thursday.
All these companies are direct or step-down wholly-owned subsidiaries of HCL Tech.
"The scheme of amalgamation would enable optimum utilisation of resources, synchronisation of synergies and an optimised legal entity structure by reducing the number of legal entities in the group structure," the filing said.
The move would also result in significant reduction in the multiplicity of legal and regulatory compliances required to be carried out by these companies.
"It will also result in cost savings by way of reduction of overheads, administrative, managerial and other expenditure and to bring about operational rationalisation and efficiency," it added.
The filing added that HCL Comnet, which is engaged in the business of rendering data communications services, had revenue of ₹310.6 crore, while Concept2silicon Systems had a topline of ₹2.99 crore for the year ended March 2018.
The scheme of amalgamation is subject to necessary statutory and regulatory approvals.