For Greater Role in IT Industry, L&T Infotech Merges With Mindtree

IT Industry in India is proliferating, and to enlarge its role in this sector, L&T has decided to merge its two software companies. Veteran IT company L&T Infotech (LTI) today (May 6) has announced a merger with Mindtree. With the merger of these two companies, a service company of about $ 350 million (Rs 26.9 thousand crores) will be formed. Let us tell you that L&T (Larsen & Turbo) had forcibly (hostile bid) bought a controlling stake (60 percent) in Mindtree about three years ago. L&T holds a 74 percent stake in L&T Infotech.

Shareholders Of Mindtree Will Get 73 Shares Of L&T Infotech For 100 Shares

According to the statement issued by the company, the shareholders of Mindtree will get 73 shares of L&T Infotech in exchange for 100 shares. The company’s name formed after the merger of both the companies will be L&T Infotech Mindtree. Shares of Mindtree on BSE today closed at Rs 3374.65 and shares of L&T Infotech at Rs 4593.10.

IT Industry -Fast-growing software industry

The demand for digitization has increased rapidly during the Corona pandemic as global businesses invest heavily in cloud computing, digital payment infrastructure, and cyber security. IT giants like TCS, Infosys, and Wipro are bagging big deals and investing heavily in cloud infra and data analytics services. The Indian tech industry has crossed $22 billion (Rs 17 lakh crore) in 2022 and is still growing. Through the merger of L&T Infotech and Mindtree, L&T will further strengthen its position in this industry.

AM Naik, Chairman, LTI, said, “The business of LTI and Mindtree complement each other. This merger will greatly benefit our customers, investors, shareholders, and employees.”

Naik told reporters that DC Chatterjee would head the merged company, Elaborating on the merger.

On the other hand, LTI’s Chief Executive Officer (CEO) Sanjay Jalona has resigned from the company, citing personal reasons.