OREANDA-NEWS. 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 Rs1 each of TCS for 100 equity shares of Rs10 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 Rs195.87crore to Rs197.04crore. 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 Rs23,816.48crore, with profit after tax of Rs5,244.28crore based on Indian GAAP. For the same period, the consolidated revenue of CMC was Rs616.68crore with profit after tax of Rs76.00crore 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 rationalised structure, enhanced reach, greater financial strength and flexibility aiding in achieving economies of scale, more focused operational efforts, standardisation and simplification of business processes and productivity improvements.