Friday, July 15, 2005

Tata Infotech merged with Consultancy

The Tata group today merged its information technology-enabled services business by merging Tata Infotech Ltd (TIL) with Tata Consultancy Services (TCS). Tata Infotech Ltd became the first Indian Information Technology company to cross Rs 10,000 crore sales ad has now become the biggest brand in this segment. The merger is proposed to be effective from April 1, 2005. The shareholders of Tata Infotech Ltd will receive one equity share of Tata Consultancy Services for every two shares held. The Tata Consultancy Sservices shares’ face value is Re 1 while Tata Infotech Ltd share has a face value of Rs 10. Post amalgamation, the paid-up share capital of Tata Consultancy Services will increase from Rs 40.01 crore to Rs 48.92 crore. After the Tata Infotech Ltd merger, Tata Consultancy Services will be the first Information Technology company in India with sales of over Rs 10,000 crore. Wipro, with net sales of Rs 8,160 crore in 2004-05 will be second largest company and Infosys Technologies, with sales of Rs 7,130 crore, will rank third in the pecking order.