Tech Mahindra , a leading Indian multinational technology company, has announced a significant corporate restructuring move along with changes to its employee stock option plans. The company's Board of Directors has given the green light to a modified merger scheme that will consolidate four of its wholly-owned subsidiaries into the parent company.

Merger Details

The Board has approved the absorption of four wholly-owned subsidiaries into Tech Mahindra:

1. Perigord Premedia (India) Private Limited
2. Perigord Data Solutions (India) Private Limited
3. Tech Mahindra Cerium Private Limited
4. Thirdware Solution Limited

The merger scheme has an appointed date of April 1, 2024, pending approval from the National Company Law Tribunal (NCLT).

Strategic Objectives

The consolidation is aimed at achieving several strategic objectives:

• Consolidation of operations
• Realization of economies of scale
• Reduction in administrative costs
• Enhancement of operational efficiency

It's worth noting that as these are wholly-owned subsidiaries, no new shares will be issued as part of the merger process.

Financial Impact

The merger brings together entities with significant financial contributions. For the financial year ending March 31, 2023:

ESOP Amendments

In addition to the merger, the Board has also approved amendments to two of the company's Employee Stock Option Plans:

• ESOP 2014
• ESOP 2018

These amendments are subject to shareholder approval, which will be sought through a postal ballot.

The merger and ESOP amendments represent significant corporate actions for Tech Mahindra, potentially streamlining its corporate structure and enhancing its ability to attract and retain talent through updated stock option plans. Shareholders and market observers will be keenly watching the implementation of these changes and their impact on the company's operational and financial performance in the coming years.

Tech Mahindra , a leading Indian IT services and consulting company, has announced the incorporation of a wholly-owned subsidiary in Saudi Arabia, marking a significant step in its Middle East expansion strategy.

New Subsidiary Details

The new entity, named "Tech Mahindra Regional Headquarters Company" (TechM RHQ), was incorporated on August 14, 2025, in the Kingdom of Saudi Arabia. The company made this announcement in a regulatory filing to the Bombay Stock Exchange (BSE) and the National Stock Exchange of India (NSE) on August 20, 2025.

Strategic Objectives

TechM RHQ has been established with the primary objective of supporting, managing, and providing strategic direction to Tech Mahindra's subsidiaries operating in Bahrain and Egypt. This move is expected to strengthen the company's presence and operational capabilities in the Middle East region.

Financial Aspects

The newly incorporated subsidiary has an authorized share capital of 100,000 Saudi Arabian Riyals (SAR). Tech Mahindra has subscribed to 100 shares at a face value of SAR 1,000 per share, aggregating to SAR 100,000, representing a 100% ownership stake in TechM RHQ.

Industry and Regulatory Compliance

The new subsidiary will operate in the IT & ITES (Information Technology Enabled Services) sector, aligning with Tech Mahindra's core business. The company has stated that no specific governmental or regulatory approvals were required for this incorporation.

Impact on Related Party Transactions

Tech Mahindra clarified that the initial subscription to TechM RHQ's share capital does not fall within the purview of Related Party Transactions for the company. However, following the incorporation, TechM RHQ has become a wholly-owned subsidiary and, consequently, a Related Party of Tech Mahindra.

Market Implications

This strategic move by Tech Mahindra underscores the company's commitment to expanding its global footprint, particularly in the Middle East. By establishing a regional headquarters in Saudi Arabia, Tech Mahindra is positioning itself to capitalize on the growing IT services market in the region and to provide more localized support to its operations in Bahrain and Egypt.

The incorporation of this new subsidiary reflects Tech Mahindra's proactive approach to strengthening its international presence and its focus on enhancing its capabilities to serve clients in the Middle East more effectively.