Shares of Tech Mahindra rose close to 2 per cent on Tuesday. The company’s board has approved the merger of its wholly-owned subsidiary Healthnxt Inc. with its parent company Tech Mahindra (Americas) Inc., also a wholly-owned subsidiary of Tech Mahindra.
As per the stock exchange filing, the merger is subject to regulatory approvals and will be effective from July 1, 2024.
“There will be no cash consideration or issue of new shares involved under the plan of merger. The investment of TMA in Healthnxt will be cancelled on the merger becoming effective,” the company said in its disclosure.
Healthnxt is a virtual healthcare company that offers integrated inpatient experience.
TMA provides computer consulting, programming support services and IT management and consulting services to customers in various industries, including healthcare.
Tech Mahindra stock traded at ₹1,424.40 on the NSE, up 1.62 per cent as of 3.04 pm.