India’s leading software services exporter, Tata Consultancy Services (TCS) has called for a meeting on its shareholders on April 28, 2015 in Mumbai to approve the proposed scheme of amalgamation of its subsidiary, CMC.
The High Court-appointed shareholders meeting follows the clearance the scheme of amalgamation received earlier from the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE).
TCS had on October 16, 2014 informed the stock exchanges that its Board of directors had approved the merger between the two companies. The date for the proposed scheme is April 1, 2015.
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In a filing to the BSE, TCS said that when implemented, the scheme of amalgamation will result in all equity shares of TCS in CMC ie. 154,89,922 equity shares of Rs 10 each (51.12 per cent of CMC’s paid up capital) getting automatically cancelled. CMC shareholders are to receive 79 equity shares of Re 1 each of TCS for every 100 equity shares of Rs 10 each of CMC. It will result in a 0.6 per cent increase in the paid-up capital of TCS from Rs 195.87 crore to Rs 197.04 crore.
CMC was a government-owned company and had set up the country’s first data network, Indonet in 1985. TCS acquired a controlling stake in CMC in 2001. CMC has over 11,000 employees.