New Delhi, Jun 25 (PTI) Indian IT major Tech Mahindra on Tuesday announced the merger of its step-down arm Healthnxt with its wholly-owned subsidiary Tech Mahindra (Americas).

The merger shall be effective from July 1, 2024, according to a regulatory filing.

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"Both the Transferor and Transferee companies are wholly-owned subsidiaries and hence there will be no cash consideration or issue of new shares involved under the Plan of Merger. The investment of TMA in Healthnxt will get cancelled on the merger becoming effective," the filing said.

Healthnxt is a wholly-owned subsidiary of Tech Mahindra (Americas) (TMA) and a step-down subsidiary of TechM. Healthnxt is a virtual healthcare company that offers fully integrated inpatient experience at home and outsourced services.

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The merger will result in synergy of business operations, optimise operational cost and reduce the compliance risk, TechM added.

The turnover of Healthnxt and TMA for FY24 was USD 1.07 million and USD 1,153.28 million respectively.

Shares of Tech Mahindra settled at Rs 1,428.25 apiece on BSE on Tuesday, up 1.96 per cent from the previous close.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)