BENGALURU: Larsen & Toubro Infotech (LTI) and Mindtree received approval for their merger on Monday and they began operating as a merged entity on the same day (November 14). The combined entity- LTIMindtree- is now the fifth-largest IT services company by market capitalisation in India.
Both the companies on Monday announced that the Mumbai and Bengaluru Benches of the National Company Law Tribunal (NCLT) have approved, via two separate orders, the scheme of amalgamation and arrangement between the two companies. LTIMindtree has a client portfolio of more than 750 global enterprises from all key industry verticals.
In May this year, both Mindtree and LTI announced their intent to merge. 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.” He added that this is a win-win proposition for all its stakeholders.
“LTIMindtree hopes to go from good to great and drive double-digit growth over the next five years. The merger will help L&T achieve its goal of increasing the IT services to 25 per cent of the group’s total business by 2026,” Naik added. As part of the merger, all shareholders of Mindtree will be issued shares of LTI in the ratio of 73 shares of LTI for every 100 shares of Mindtree.
Parent company L&T will hold 68.73 per cent of the merged entity. “The Record Date to determine the eligible shareholders of Mindtree for the issue of equity shares of LTI pursuant to the scheme is fixed as November 24, 2022,” the company’s statement said. Debashis Chatterjee, CEO and MD 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.”
Both LTI and Mindtree together had a combined headcount of 89,271 as of September 2022. In Q2FY23, LTI’s revenues stood at Rs 4,836.7 crore and Mindtree’s revenue from operations was at Rs 3,400 crore.
