Latest News
Tata Consultancy Services Ltd.

CMC Limited Amalgamates with TCS

Oct 16, 2014   19:26 IST 
Mumbai, Maharashtra, India

Tata Consultancy Services (TCS) (BSE: 532540, NSE: TCS), the leading IT services, consulting and business solutions firm today announced that the Board of Directors of TCS and CMC Limited (CMC), a subsidiary of TCS, have today approved the amalgamation of CMC with TCS pursuant to the provisions of Sections 391 to 394 of the Companies Act, 1956.

 

As per the terms of the Scheme of Amalgamation (Scheme), shareholders of CMC will receive 79 equity share of Rs. 1 each of TCS for 100 equity shares of Rs. 10 each of CMC. The swap ratio has been arrived at based on the valuation report prepared by B.S.R. & Associates LLP.

 

After the amalgamation, the paid-up share capital of TCS will increase from Rs. 195.87 crore to Rs. 197.04 crore. The Scheme is subject to, court, regulatory, shareholders and other necessary approvals.

 

The consolidated revenue of TCS, for the quarter ended September 30, 2014, was Rs. 23,816.48 crore, with profit after tax of Rs. 5,244.28 crore based on Indian GAAP. For the same period, the consolidated revenue of CMC was Rs. 616.68 crore with profit after tax of Rs. 76.00 crore based on Indian GAAP.

 

CMC, where TCS holds a 51.12% stake, is engaged in the design, development and implementation of software technologies and applications, providing professional services in India and overseas, and procurement, installation, commissioning, warranty and maintenance of imported/indigenous computer and networking systems, and in education and training.

 

The amalgamation will enable TCS to consolidate CMC’s operations in a single company with rationalized structure, enhanced reach, greater financial strength and flexibility aiding in achieving economies of scale, more focused operational efforts, standardization and simplification of business processes and productivity improvements.

 

About Tata Consultancy Services Ltd. (TCS):

Tata Consultancy Services is an IT servicesconsulting and business solutions organization that delivers real results to global business, ensuring a level of certainty no other firm can match. TCS offers a consulting-led, integrated portfolio of ITBPS,infrastructureengineering and assurance services. This is delivered through its unique Global Network Delivery Model™, recognized as the benchmark of excellence in software development. A part of the Tata group, India’s largest industrial conglomerate, TCS has over 310,000 of the world’s best-trained consultants in 46 countries. The company generated consolidated revenues of US $13.4 billion for year ended March 31, 2014 and is listed on the National Stock Exchange and Bombay Stock Exchange in India. For more information, visit us at www.tcs.com.

 

Follow TCS on Twitter.

Subscribe to an RSS Feed of TCS Press Releases.

 

For More Information, Please Contact:

 

Media: +91 22 6778 9999

Investor Relations: 91 22 6778 9999

Pradipta.bagchi@tcs.com/ h.ramachandra@tcs.com

shamala.p@tcs.com

Kedar.shirali@tcs.com

 


 
 
CMC Limited
CMC Limited
For press background on Tata Consultancy Services Ltd.

click here