IT companies Larsen & Toubro Infotech (LTI) and Mindtree announced on Monday that their merger has come into effect following approval from regulators and shareholders. The merged entity LTIMindtree is now the fifth-largest IT services company in India in terms of current market capitalisation.
As part of the merger, 73 shares of LTI will be granted to each shareholder of Mindtree for every 100 shares of Mindtree. L&T, the merging entity’s parent company will own 68.73 per cent of it. November 24 has been set as the record date to identify Mindtree shareholders who are qualified to receive equity shares of LTI, according to a BSE filing. A M Naik, Group Chairman of L&T and Chairman of LTIMindtree, said, “LTIMindtree is integral to L&T’s technology-led growth vision and is poised to play a crucial role in the expansion and diversification of our services portfolio. The highly complementary strengths of LTI and Mindtree make this integration a win-win proposition for all our stakeholders — clients, partners, investors, shareholders, employees, and communities — furthering L&T’s tradition of innovation, excellence, trust, and empathy.”
LTI and Mindtree had announced their intent to merge in May 2022 and the effective date for the company to start operating is November 14.
LTIMindtree will thus become the fifth-largest IT services company in India in terms of current market capitalisation. LTIMindtree, a scaledp-up IT services provider has a client portfolio of more than 750 leading global enterprises from all key industry verticals, and nearly 90,000 professionals spread in more than 30 countries across five continents.
S N Subrahmanyan, Chief Executive Officer and Managing Director of L&T, and ViceChairman of LTIMindtree, said, “We are grateful to the authorities for the swift passage of the proposed transaction through statutory processes and for its approval in a record time. This integration is much more than just the coming together of two highly successful companies. It is about turning the collective wisdom of the two companies into a much larger force for creating long-term value for all our stakeholders.”
Debashis Chatterjee, Chief Executive Officer and Managing Director of LTIMindtree, said, “Amid the proliferation of new business models and revenue streams in a rapidly converging world, LTIMindtree will help businesses proactively take on and shape the future by harnessing the full power of digital technologies. Armed with top talent, comprehensive offerings, and a cumulative experience of more than five decades, LTIMindtree brings the diversity of scale and capabilities required to help businesses reimagine possibilities, deliver impact, and get to the future, faster.”