Expleo Group to consolidate entire India Business under Expleo Solutions; Stocks hit 52-week high

The merger will help ESL in adding fast growing and niche Engineering Design Services business.

Jul 12, 2021 04:07 IST India Infoline News Service

Bull Market
Expleo Solutions Limited has informed that the Board of the company and Expleo India Infosystems has announced a Scheme of Amalgamation involving Merger of EIIPL (including its subsidiaries and stepdown subsidiary) into ESL.

Pursuant to the above restructuring, ESL shall issue 459 fully paid-up equity shares of INR 10 (Indian Rupees Ten) each of ESL for every 10 equity shares of INR 10 (Indian Rupees Ten) each held in EIIPL.

The contemplated consolidation of the Group Businesses in India in a single listed entity - ESL is expected to enhance business focus, improve synergies and will pave the way for focused growth and sustained value creation for all the stakeholders over a period of time.

Further, the consolidation will also help in simplification of the Group Corporate Holding Structure in India by reducing number of active business entities and thereby aligning the interests of all stakeholders by removing perceived conflict of parent entity in outsourcing business to multiple group entities currently prevailing in India.

The merger will help ESL in adding fast growing and niche Engineering Design Services business under its umbrella, currently part of Expleo Technologies India Pvt Ltd. (ETIPL), a wholly owned subsidiary of EIIPL.

Commenting on the transaction, Rajesh Krishnamurthy, CEO, Expleo Group, said: “This consolidation of our business interests in India is a step towards simplification of our structure and to tap into the potential of capability and scale in India. This is in line with our strategy to tap into best shoring for accelerating our business growth and specifically for Digital and Emerging Services.”

Balaji Viswanathan, Managing Director & CEO, Expleo Solutions Limited, said, “This is an important step towards consolidation of Expleo group’s businesses in India, this will make us an end-to-end Engineering, Consultancy and Quality Assurance provider across Industry sectors and domains in this market.

This move will help us to leverage our Global capabilities and build scale in India. This consolidation will also help us in becoming a significant Engineering, Digital Transformation and Technology services provider in this market with over 3000+ Engineers spread across 4 cities.”

Expleo Solutions ended at Rs1096.60 apiece higher  by 20% upper circuit on Sensex. The stocks hit 52-week high on Monday trading session.

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