COMPANIES

No Data Found

NEWS

No Data Found
Advertisement
L&T Infotech-Mindtree merger announced. All details here

L&T Infotech-Mindtree merger announced. All details here

Upon the scheme becoming effective, all shareholders of Mindtree will be issued shares of LTI at the ratio of 73 shares of LTI for every 100 shares of Mindtree. 

Aparna Banerjea
Aparna Banerjea
  • Updated May 6, 2022 5:06 PM IST
L&T Infotech-Mindtree merger announced. All details hereLarsen & Toubro Limited will hold 68.73 % of LTI after the merger.

L&T Infotech board on Friday announced amalgamation and arrangement with Mindtree "to create an efficient and scaled-up IT services provider exceeding $3.5 billion." The transaction is subject to shareholder and regulatory approvals. Both the companies are Larsen & Toubro's subsidiaries.

Given that recent industry shifts (e.g., prominence of large deals, preference for end-to-end offerings) are benefitting at-scale players, LTI and Mindtree have decided that the time is appropriate to combine the strengths of both organisations to better serve the customers, LTI said in a statement.

Advertisement

Upon the scheme becoming effective, all shareholders of Mindtree will be issued shares of LTI at the ratio of 73 shares of LTI for every 100 shares of Mindtree. The new shares of LTI so issued will be traded on the NSE and BSE. Larsen & Toubro Limited will hold 68.73 per cent of LTI after the merger, the statement added

For now, the companies will continue to function independently. A Steering Committee will be constituted to oversee
the transition till the merger process is complete. The name of the combined entity will be “LTIMindtree”.

L&T also stated "significant scale benefits are anticipated" through LTI and Mindtree’s complementary strengths resulting in a stronger portfolio of offerings across verticals."

Graphic credit: Pragati Srivastava

Speaking about the merger, A M Naik, Chairman, LTI, said, “This merger represents our continued commitment to
grow the IT services business in line with our strategic vision. The highly complementary businesses of LTI and Mindtree
will make this integration a ‘win-win’ proposition for our customers, investors, shareholders, and employees.”

Advertisement

S N Subrahmanyan, Vice Chairman, LTI, said, “We are confident that the proposed merger will help us build on the combined strengths of both these organizations to unlock synergies through scale, cross-vertical expertise, and talent pool. This will help us emerge as a partner of choice for large-scale tech transformations and create a distinctive employee value proposition.”

LTI noted the the merger will bing "enhanced customer engagement and delivery model through industrialization of delivery and streamlined value-enabling processes is expected to result in improvement in large deal capabilities. These opportunities will create a more distinctive employee value proposition and stronger partnerships with ecosystem players."

Shares of LTI on Friday closed 3.64 per cent lower at Rs 4,593.10 apiece while shares of Mindtree closed 3.88 per cent lower at Rs 3,374.65 apiece on BSE.

Published on: May 6, 2022 4:01 PM IST
Post a comment