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KPIT Technologies board approves plan of Birlasoft merger with itself

The combined KPIT-Birlasoft entity will be engaged in the IT business

Press Trust of India  |  New Delhi 

KPIT Technologies board approves plan of Birlasoft merger with itself

Technologies on Monday said its board has approved plan to amalgamate with itself, while engineering business of the company will be demerged. "The Board has approved a draft composite scheme for amalgamation of (India) Ltd with the company and demerger of the engineering business of the company into Engineering Ltd, a wholly owned subsidiary of the company," it said in a regulatory filing. As per the proposed merger, shareholders of will receive 22 equity shares of the combined KPIT-for every nine equity shares of The combined KPIT-entity will be engaged in the IT business. "The tremendous value created by will continue in two new avatars and become leading in their respective spaces. "While transitioning the 'Business IT Services' business to in the next year, our team will continue to work with to ensure the best service to the Business IT customers," Chairman Ravi Pandit said. The shares of KPIL Engineering Ltd (KEL) will be listed pursuant to the proposed demerger and the shareholders of combined KPIT-will receive one share of KEL for every one share they hold in the combined firm, it said further. "After the proposed demerger, the existing promoters of the company propose to acquire sole control and substantial shareholding in KEL from the promoters," Technologies said. Technologies provides IT consulting and product engineering solutions to areas like automotive and transportation, consumer and industrial goods. Part of the old CK Birla Group, provides information technology (IT) services across various verticals. Shares of Technologies closed 0.99 per cent down at Rs 209.25 on BSE.

First Published: Mon, January 29 2018. 22:32 IST