L&T to own 68.73% in combined entity after Mindtree, LTI merger

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New Delhi, May 7 | Larsen & Toubro Limited as the promoter will own 68.73 per cent stake in the combined entity created by the merger of Mindtree and L&T Infotech (LTI).

Mindtree, a leading digital transformation partner with market cap of Rs 578.4 billion will merge into LTI, a global technology consulting and digital solutions company with market cap of Rs 836.2 billion.

Subsidiaries and associates of Mindtree will become subsidiaries and associates of LTI.

The amalgamated entity will be named as ‘LTIMindtree Limited’, subject to approvals Closing Timeline and Approvals.

Transaction completion is subject to shareholders, creditors and regulatory approvals including from stock exchanges and NCLT.

Closing is expected to be achieved within 9 to 12 months, subject to completion of shareholder and regulatory approvals.

The shareholders of Mindtree as on record date will receive 73 shares of LTI (face value of Re 1 each) for 100 shares of Mindtree (face value of Rs 10 each).

Larsen & Toubro Limited (the promoter) will own 68.73 per cent stake in the combined entity.

The Boards of Directors of Mindtree and LTI at their respective meetings held on Friday approved a composite scheme of amalgamation of both these independently listed IT services companies under the Larsen & Toubro Group.

The proposed integration will see Mindtree and LTI join strengths to create an efficient and scaled up IT services provider exceeding $3.5 billion.

Both Mindtree and LTI have delivered market leading financial performance and created value for shareholders. Given that recent industry shifts (e.g., prominence of large deals, preference for end-to-end offerings) are benefiting at-scale players, the two companies have decided that the time is appropriate to combine the strengths of both organisations to better serve the customers, a statement said.

Significant scale benefits are anticipated through Mindtree and LTI’s complementary strengths resulting in a stronger portfolio of offerings across verticals.

Enhanced customer engagement and delivery model through industrialisation 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.

Source: IANS

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Share Market Closing Bell: Market ends the week in green, Sensex surges 1,534 pts and Nifty sinks below 15,850

Share Market Closing Bell: Market ends the week in green, Sensex surges 1,534 pts and Nifty sinks below 15,850

The NIFTY 50 recouped the previous day’s losses and ended at 2.89 percent higher on strong global cues after China cut key lending rates. Nifty continued its upside rally throughout the day as it ended at 16266.15 levels. Bank nifty closed the session at 34276.40 level with a gain of 960 points. VIX closed at 23.10 down by 5.94%.

48 stocks out of NIFTY 50 closed in green which suggest broad based buying. All the sectoral indices are trading higher with metal, pharma, PSU bank and realty indices up 2-3 percent each. Stocks like DRREDDY, JSWSTEEL, NESTLEIND, TATAMOTORS & TATASTEEL were the top gainers, While SHREECEM & UPL were only two losers. The Nifty has formed Open Bullish Marabozu on a daily time frame which indicates upside momentum for an upcoming session.

Moreover, Nifty has been trading in a range of 15750-16410 levels throughout the week, crossing either side can direct further direction. In addition, Nifty has given a closing above 9-Day Moving Average which indicates a bounceback from lower levels can be seen.

However, the momentum indicators MACD & Stochastic were trading witha positive crossover & reversed from oversold zone on an hourly chart which suggest a northward journey in Nifty. The Nifty may find Strong support around16000 levels, while on the upside 16410 may act as an immediate hurdle. On the other hand, Bank nifty has support at 33200 levels while resistance at 34800levels.

Palak Kothari
Research Associate
Choice Broking

Source: Choice India

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