LTIMindtree: L&T Infotech, Mindtree to operate as combined entity

Larsen & Toubro Infotech and Mindtree will operate as a single entity from Monday (November 14). Debashis Chatterjee, the CEO of Mindtree, will take over as the CEO and managing director of the combined entity, LTIMindtree.

A notification to the BSE said that both Mumbai and Bengaluru Benches of the National Company Law Tribunal (NCLT) have approved, through separate orders, the scheme of amalgamation and arrangement between L & T Infotech and Mindtree.

The two companies announced their intent to merge in May 2022. This approval clears the way for the merger of the two independently listed companies as LTIMindtree, a scaled-up IT services provider with a client portfolio of more than 750 leading global enterprises from all key industry verticals and nearly 90,000 professionals spread in more than 30 countries across five continents.

In 2019, L & T completed the takeover of Mindtree following the acquisition of 60 per cent stake in the Bengaluru-based IT services company.

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LTIMindtree will thus become the fifth-largest IT service’s company in India in terms of current market capitalization. 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 merged entity. 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 service’s portfolio.

The complementary strengths of LTI and Mindtree make this integration a win-win proposition for all our stakeholders, clients, partners, investors, shareholders, employees, and communities, furthering L&T’s tradition of innovation, excellence, trust, and empathy.”

S. N. Subrahmanyan, Chief Executive Officer and Managing Director of L&T and ViceChairman of LTIMindtree, said, “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.”

Debashis Chatterjee, Chief Executive Officer and Managing Director 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. Armed with top talent, comprehensive offerings, and a cumulative experience of more than five decades, LTIMindtree brings the diversity of scale and capabilities required to help businesses reimagine possibilities, deliver impact, and get to the future faster.”