Traders monitor financial data on computer screens on the trading floor at ETX Capital, a broker of contracts-for-difference in London, U.K. (Photographer: Chris Ratcliffe/Bloomberg)

KPIT Technologies-Birlasoft Deal: Key Things To Know

A complex three-step deal between KPIT Technologies Ltd. and CK Birla Group’s Birlasoft is expected to complete by March this year.

The transaction involves a merger and then a demerger to create two specialised technology companies, according to their media statement issued in January last year.

Birlasoft and KPIT promoters will launch an open offer for KPIT’s minority shareholders. Birlasoft will first merge with KPIT and the merged entity will be named Birlasoft. Then the combined entity will be split into two units—a more than $500-million enterprise digital IT services company and an over $200-million automotive engineering and mobility solutions company. The demerged KPIT Engineering will again be renamed as KPIT Technologies.

KPIT Technologies, in a separate statement issued yesterday, released the timeline for the execution of the deal:

Timeline Of Restructuring

  • Jan. 15, 2019: Record date for issuing KPIT shares to Birlasoft promoters as consideration for the merger.
  • Jan. 18, 2019: Shares will be allotted to Birlasoft promoters.
  • Jan. 24, 2019: KPIT Technologies’ shares will now start trading without the engineering business, which has been spun out.
  • Jan. 25, 2019: Shareholders will be identified who will get shares of KPIT Engineering. One share of KPIT Engineering will be issued for every share of KPIT Technologies held.
  • First week of February 2019: KPIT Technologies’ name will be changed to Birlasoft.
  • Second week of February 2019: KPIT Engineering will be renamed as KPIT Technologies.
  • March 2019: KPIT Technologies will now be again listed on the bourses.