IT majors L&T Infotech and Mindtree announced on Monday that the Mumbai and Bengaluru benches of the National Company Law Tribunal approved the merger of the two companies into LTIMindtree, making it the fifth-largest IT company in the country.
The merger, which was announced in May, was approved by creditors and shareholders of both these companies.
"By combining their strengths and unlocking the benefits of scale, LTIMindtree will operate with a stronger, highly diversified portfolio of end-to-end services and skills across a wider market footprint. It will bring a converged point of view based on its expanded cross-industry expertise to help clients tap into opportunities presented by the blurring of industry lines," a filing at the exchanges read.
LTIMindtree CEO and MD Debashis Chatterjee said the merged entity brings the diversity of scale and capabilities required to help businesses reimagine possibilities, deliver impact, and get to the future faster.
How will it affect shareholders?
LTI, in a press release, said 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. "The parent company, L&T, will hold 68.73 per cent of the merging entity. The record date to determine the eligible shareholders of Mindtree for issue of equity shares of LTI pursuant to the scheme is fixed as November 24, 2022."
"By combining their strengths and unlocking the benefits of scale, LTIMindtree will operate with a stronger, highly diversified portfolio of end-to-end services and skills across a wider market footprint. It will bring a converged point of view based on its expanded cross-industry expertise to help clients tap into opportunities presented by the blurring of industry lines," the company said.
The highly complementary strengths of LTI and Mindtree make this integration a win-win proposal for all stakeholders—clients, partners, investors, shareholders, employees and communities—, said CEO and MD of L&T, and vice-chairman of LTIMindtree, S.N. Subrahmanyan.
