KPIT Technologies has received board approval to merger itself with Birlasoft, while the engineering business of the company will be demerged.

In a regulatory filing the company stated, “The Board has approved a draft composite scheme for amalgamation of Birlasoft (India) Ltd with the company and demerger of the engineering business of the company into KPIT Engineering Ltd, a wholly owned subsidiary of the company.”

The proposed merger will allow shareholders of Birlasoft to receive 22 equity shares of the combined KPIT-Birlasoft for every 9 equity shares of Birlasoft. The combined entity will be involved in the business of IT.

Furthermore, shares of KPIL Engineering Ltd (KEL) will be listed pursuant to the proposed demerger and the shareholders of the combined entity will receive 1 share of KEL for every 1 share they hold in the combined entity.

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