CMC, a systems engineering and integration company in India, said Thursday the board of directors of CMC and Tata Consultancy Services (TCS) have approved the amalgamation of CMC with TCS pursuant to and subject to the provisions of sections 391 to 394 of the companies act, 1956.

As per the terms of the scheme of amalgamation (scheme), shareholder of CMC will receive 79 equity shares of Rs 1 each of TCS for 100 equity shares of Rs 10 each of CMC. The swap ratio has been arrived at based on the valuation report prepared by BSR & Associates LLP.

The scheme is subject to court, regulatory, shareholders and other necessary approvals. The consolidated revenue of CMC for the quarter ended Sept. 30, 2014 was Rs 6.16 billion with profit after tax of Rs 760 million.

Shares of the company gained Rs 41.2, or 1.92%, to settle at Rs 2,187.65. The total volume of shares traded was 12,458 at the BSE (Thursday).