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MES and Tech Mahindra boost engineering prowess

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Krystal
New Update

MUMBAI, INDIA: The board of directors of Tech Mahindra Limited ("Tech Mahindra") and Mahindra Engineering Services Ltd, ("MES"), in their respective meetings approved a proposal to merge MES with Tech Mahindra.

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This merger is subject to necessary regulatory approvals, and will see the creation of one of the prominent players providing engineering services from India with strengths in Aerospace and Automotive verticals. MES will benefit due to the larger global reach and deeper resource pool of Tech Mahindra, while Tech Mahindra will gain access to some of the key automotive clients across the globe.

The exchange ratio recommended by the valuers and approved by both the boards is five shares of Tech Mahindra (face value of Rs. 10 each), for every 12 shares of Mahindra Engineering Services Limited (face value of Rs.10 each). Tech Mahindra will also 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 could take approximately eight to nine months.