Mahindra Engineering Services to merge with TechM

Written by fe Bureau | Mumbai | Updated: Nov 30 2013, 10:09am hrs
Tech Mahindra has approved the merger of its engineering consultancy firm Mahindra Engineering Services (MES) with itself.

MES provides services to the automotive, aerospace, defence and manufacturing industries. The approved share exchange ratio is 5 shares of Tech Mahindra with a face value of R10 each, for every 12 shares of MES with the same face value.

Tech Mahindra will issue 0.426 crore new shares, thereby, increasing its outstanding shares to 23.73 crore. The merger is subject to all regulatory authority approvals and the entire process is expected to be completed in approximately nine months.

The merger strengthens the existing services portfolio, enhances presence in US and Germany, provides scale and brings in new clients for further expansion, Karthikeyan Natarajan, global head integrated engineering services, Tech Mahindra, said.