Tech Mahindra Announces Healthnxt Merger: Strategic Move to Boost Operational Synergy

Tech Mahindra has announced the merger of its step-down subsidiary, Healthnxt, with its wholly-owned subsidiary Tech Mahindra (Americas). The merger, effective from July 1, 2024, aims to optimize operational costs and reduce compliance risks. Both companies are wholly-owned subsidiaries, meaning no new shares will be issued.

In a significant corporate move, Tech Mahindra disclosed on Tuesday its decision to merge Healthnxt, a step-down subsidiary, with its wholly-owned Tech Mahindra (Americas).

The merger, slated to take effect on July 1, 2024, seeks to streamline business operations, minimize operational costs, and mitigate compliance risks, according to a regulatory filing.

With both entities being wholly-owned subsidiaries, the merger will not involve any cash considerations or issuance of new shares. The investment of Tech Mahindra (Americas) in Healthnxt will be nullified once the merger is finalized.

Healthnxt specializes in virtual healthcare, offering comprehensive inpatient services at home. The merger is expected to create synergy in business operations and optimize costs. For the fiscal year 2024, Healthnxt reported a turnover of USD 1.07 million, while Tech Mahindra (Americas) reported USD 1,153.28 million.

Following the announcement, Tech Mahindra's shares saw a slight uptick, closing at Rs 1,428.25 per share on BSE, marking a 1.96% increase from the previous close.

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