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Leading bourses BSE and NSE have given approval for the merger of Mahindra Engineering Services with Tech Mahindra saying that the amalgamation does not violate securities laws norm.
The boards of Tech Mahindra and Mahindra Engineering Services Ltd (MES) had approved the proposal in November.
In a communication to Tech Mahindra, the exchanges said on Friday that they are granting ‘no-objection approval’ to the proposed scheme.
This observation letter would be valid for six months, within which period the company would have to file the scheme with the High Court for further clearance.
The exchanges said market regulator SEBI’s observations on the scheme requires to display ‘fairness opinion’ submitted by it on the website of the listed firm.
According to the confirmation given by the company “the scheme does not in any way violate, over-ride or circumscribe the provisions of securities laws or the stock exchange requirements“.
“Accordingly, we hereby convey our ‘no-objection’ with limited reference to those matters having a bearing on listing/delisting/continuous listing requirements within the provisions of the listing agreement, so as to enable the Company to file the scheme with the High Court,” the exchanges said in similar-worded statement.
Besides, the bourses have given green signal for the merger of Mahindra Composites with Mahindra Forgings.
As per norms, companies seeking to execute merger or de-merger strategies need to obtain a ‘no-objection certificate’ from stock exchanges.
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