AHMEDABAD: The daily quoting sources said that as a result of the merger, the entire business of IMB India would be transferred to IGSI and in consideration of the same IGSI would issue shares to the shareholders of IBM India. The number of shares to be issued is yet to be determined as the swap ratio has not been finalised. In India, IBM employs about 4,700 people, of which about 3,700 are with IGSI. This is expected to go up substantially in the near future. Revenues for the year ended March ‘03 are estimated at nearly Rs 1,778 crore. IBM India currently owns 10% of IGSI’s equity, while the balance is owned by the US-based IBM World Trade Corporation. On completion of the proposed merger of IBM India with IGSI, the equity shares held by IBM India in IGSI would stand cancelled. Following the issue of shares in IGSI to IBM India, as part of the merger, IGSI would become a wholly-owned subsidiary of IBM World Trade Corporation. IGSI would, however, continue to carry on its existing business as well as that being carried out by IBM India. IGSI has sought necessary government approvals for the same. As such the company would now provide an entire range of information technology services. It would also manufacture, market and export computer systems including input and output devices, network product software and maintenance services. The daily said that a board resolution for the merger of IGSI and IBM India has already been moved. The company has also informed the government that the proposed merger would be implemented after obtaining the approval from various regulatory authorities and would be subject to the approval of the Karnataka High Court. IGSI’s business has witnessed steady growth and is now seen as a serious threat to Indian IT services companies like Infosys and Wipro in the offshore space. IBM’s Indian operations are heavily skewed in favour of IGSI. (Source: ET)