CyberMedia India Approves Merger with CyberMedia Research Services, Aims to Create Comprehensive Marketing Solutions Provider

Cyber Media (India) Limited's Board of Directors has approved a scheme of amalgamation to merge its subsidiary, CyberMedia Research Services Limited (CMRSL), into the company. This strategic move aims to consolidate business operations, create operational synergies, and position the combined entity as a comprehensive marketing solutions provider.

Key Details of the Merger

The merger involves a share exchange ratio where shareholders of CMRSL will receive 35 fully paid-up equity shares of Cyber Media India for every 8 shares held in CMRSL. This transaction is subject to approvals from shareholders, creditors, and the National Company Law Tribunal (NCLT).

Business Overview

Cyber Media India operates in the print media and publishing sector, producing magazines such as Dataquest, PCQuest, and Voice & Data. The company has a strong presence in the Indian technology media landscape with a legacy spanning over four decades. CMRSL, on the other hand, specializes in digital marketing, social media campaigns, and market research services.

Rationale for the Merger

The amalgamation is expected to bring several benefits:

Consolidation of business operations
Creation of operational synergies
Reduction in compliance costs
Positioning as a comprehensive marketing solutions provider

Financial Snapshot

The following table provides a financial overview of both entities based on their latest available data:

Entity	Turnover (₹ in crore)	Total Assets (₹ in crore)	Net Worth (₹ in crore)
CMIL	8.23	12.39	-17.62
CMRSL	30.00	36.12	15.39

Impact on Shareholding

Post-merger, the shareholding pattern of Cyber Media India is expected to change significantly:

Shareholder Category	Pre-Merger Shares	Pre-Merger %	Post-Merger Shares	Post-Merger %
Promoter & Promoter Group	1,38,67,187	66.57	1,44,11,700	50.13
Public	69,62,534	33.43	1,43,38,522	49.87
Total	2,08,29,721	100.00	2,87,50,222	100.00

The merger is expected to decrease promoter shareholding from 66.57% to 50.13%, while increasing public shareholding from 33.43% to 49.87%.

Conclusion

This strategic merger between Cyber Media India and CMRSL aims to create a stronger, more diversified entity in the media and digital marketing space. The combined entity is expected to leverage synergies, reduce costs, and offer comprehensive marketing solutions to its customers.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-1.44%	-4.60%	-4.55%	+14.39%	-38.51%	+658.33%

Cyber Media (India) Limited, a prominent player in the Indian technology media landscape, has released its financial results for the quarter ended September 30, alongside a significant announcement of a merger with its subsidiary.

Q2 Financial Performance

Cyber Media reported a mixed set of results for the second quarter. The company's consolidated revenue from operations stood at ₹24.21 crore, showing a decline from ₹25.85 crore in the previous quarter. However, when compared to the same quarter last year, which recorded ₹20.65 crore, the company has shown year-on-year growth.

For the half-year period, Cyber Media's consolidated revenue reached ₹50.05 crore, up from ₹41.30 crore in the previous year, indicating a positive trend in overall performance.

Profitability Turnaround

In a notable turnaround, Cyber Media posted a consolidated profit after tax of ₹87.09 lakh for the quarter, reversing from a loss of ₹128.10 lakh in the previous quarter. This improvement in profitability suggests effective cost management and operational efficiency measures implemented by the company.

Segment Performance

Cyber Media operates through two main segments: Media Services and Digital Services. The Digital Services segment emerged as the primary revenue driver, contributing ₹20.49 crore to the quarterly revenue.

Standalone Performance

On a standalone basis, Cyber Media reported revenue of ₹3.72 crore for the quarter and ₹7.47 crore for the half-year period.

Merger Announcement

In a significant development, Cyber Media's Board of Directors has approved a Scheme of Amalgamation for the merger of Cyber Media Research & Services Limited (CMRSL) into Cyber Media (India) Limited (CMIL). This strategic move aims to consolidate operations and create a stronger entity in the digital marketing and media landscape.

Key Details of the Merger

Share Exchange Ratio: 35 fully paid-up equity shares of CMIL (face value ₹10 each) will be issued for every 8 fully paid-up equity shares of CMRSL (face value ₹10 each).
Rationale: The merger is expected to create synergies, improve operational efficiency, and enhance shareholder value.
Business Integration: CMRSL's expertise in ad tech and data analytics will complement CMIL's strong presence in technology media.
Financial Impact: Based on the latest available data, the merged entity is expected to have a stronger financial position.

Particulars	CMIL (₹ in crore)	CMRSL (₹ in crore)
Turnover	8.23	30.00
Total Assets	12.39	36.12
Net Worth	(17.62)	15.39

Shareholding Changes: Post-merger, the promoter group's stake is expected to decrease from 66.57% to 50.13%, while public shareholding will increase from 33.43% to 49.87%.

The merger is subject to necessary approvals from shareholders, creditors, the National Company Law Tribunal (NCLT), and other regulatory authorities.

Cyber Media's strategic move to merge with its subsidiary CMRSL reflects the company's focus on strengthening its position in the evolving digital media and marketing landscape. As the integration progresses, stakeholders will be keenly watching how this consolidation impacts the company's future performance and market standing.