On Monday, two IT companies, Larsen & Toubro Infotech (LTI) and Mindtree, announced their merger, which will come into effect following the regulators and shareholders. The merger company is known as LTIMindtree and is now the fifth-largest IT company in India in terms of current market capitalisation.
After the merger, 73 shares of LTI will be granted to each Mindtree shareholder for every 100 shares. L&T Infotech will own 68.73 per cent of it. The record date to identify Mindtree shareholders who are qualified to receive equity shares of LTI is set for November 24.
A M Naik, Group Chairman of L&T Infotech and Chairman of merger 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 our stakeholders- clients, partners, investors, shareholders, employees and communities, furthering L&T’s tradition of innovation, excellence, trust and empathy.”
Jointly, LTIMintree has a client portfolio of more than 750 leading global enterprises from all key industry verticals, and it has nearly 90,000 professionals spread in more than 30 countries across five continents.
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S N Subrahmanyan, Chief Executive Officer and Managing Director of L&T, and Vice Chairman 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.”
Reports suggest that Mindtree recorded a 49% increase in its fourth-quarter net profit at Rs 473 crore for the quarter that ended on March 31, 2022. The overall revenue of the company was Rs 10,525.33 crore. On the other hand, LTI recorded Rs 637.5 crore net profit and revenue of Rs. 4,301.6 crore for the quarter that ended March 31, 2022.