Tata Consultancy Services (TCS) has announced the acquisition of 100 percent equity shares of Darshita Southern India Happy Homes. India's largest IT company made the announcement in an exchange filing on Bombay Stock Exchange. The acquisition is valued at Rs 2,250 crore, as per TCS' exchange filing. The acquisition is an all-cash deal.
Darshita Southern India Happy Homes is a commercial real estate company. TCS further added in the BSE filing that the company will also acquire the land and the building of the Darshita Southern India Happy Homes, turning it into a delivery centre for the Indian tech giant. "Acquisition of land and building which is held by the entity to serve as a delivery center," read the exchange filing. According to a report in Moneycontrol, quoting sources, the planned delivery centre will be located in Bengaluru.
Timeline of TCS-Darshita Southern India Happy Home merger
On the indicative time period for completion of the acquisition, the filing said: Call option to acquire 100% equity shares in the entity after two (2) years. This is reportedly being done through a special purpose vehicle (SPV) that will allow the company to buy a part of the real estate of Darshita Southern India Happy Homes.
The exchange filing also shares details about Darshita Southern India Happy Homes, "Incorporated in September 2004, the entity is engaged in the development of a commercial property which would be let on lease to prospective industrial consumers. Since the property is still under development, revenue generation is yet to commence, hence last 3 years turnover is Nil," it says.