IMPACT OF MERGER AND ACQUISITION ON FINANCIAL PERFORMANCE OF TCS AND CMC

Abstract

Corporate restructuring is redesigning of business. It can be done through expansion techniques, divestment techniques and many other techniques. Expansion techniques includes Merger and acquisition, takeovers, strategic alliances, joint ventures while divestment techniques includes methods such as demergers, hive off, slump sale, leverage buyout, management buyout or liquidation. Merger means consolidation of two or more companies into one company, whereas in acquisition one company acquires another one. The motive behind mergers and acquisition is to create synergies. Here the focus is on IT companies. IT is always a booming sector. Information technology is used in all sectors nowadays, that’s why it is considered as backbone of all sectors. The main aim of present paper is to analyze the impact of merger and acquisition on financial performance of the IT companies in India. The paper presents the case of merger and acquisition of TCS and CMC. The data is collected from secondary sources. These have been collected from companies official website, Bombay stock exchange, journals, articles and online available sources. Financial ratios were employed for data analysis. The finding indicates that there is no significant improvement is observed.