Quess Corp and Allsec Tech shares rose on Thursday, a day after the boards of both companies announced a merger between them in an all-stock deal. Chennai-based human resource outsourcing (HRO) firm Allsec will merge with Bengaluru-based business services provider Quess, according to a joint statement.
Quess Corp shares rose by as much as Rs 26.7 or 4.3 percent to Rs 642.9 apiece on BSE. Allsec gained by as much as Rs 51.5 or 11.9 percent to Rs 482.5 apiece.
The boards of both companies gave nod to the scheme of merger in their meetings on June 22.
Quess Corp and Allsec Tech will continue to function as independent entities till the merger comes into force.
After the merger, the combined entity will be a larger organisation with expanded offerings to take to the market, according to the statement. The merger will allow the companies to attract and retain talent given the additional opportunities opening up, it said.
Under the deal, Allsec's minority shareholders other than Quess will be issued equity shares of Quess. For every 100 shares held in Allsec, investors will receive 74 Quess shares.
The deal will be tax neutral for both the companies, according to the statement.
Once the merger is completed, all the subsidiaries of Allsec will become subsidiaries of Quess.
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