HCL Technologies to merge with HCL Technoparks

Global IT services provider HCL Technologies Ltd said late yesterday that its board of directors have approved the amalgamation of HCL Technoparks Ltd, its wholly owned subsidiary with itself, sending the company stock soaring to a high of Rs374 today.

HCL, the $5 billion leading global technology company made this announcement after trading hours yesterday.

The company said that its board has also approved the draft scheme of amalgamation for the merger of the companies.

The approval of the board is subject to requisite, approvals that may be required, including those of shareholders, creditors, any regulatory authorities and the sanction of the scheme of amalgamation by the Delhi High Court, the company said in a statement.

Although its stock soared to a high of Rs374 in early trading today and an intraday low of Rs352, it ended at Rs368. The company's two-week daily average trade of 1.4 lakh shares, more than doubled to over 3.2 lakh shares on the Bombay Stock Exchange today.