The combined entity called LTIMindtree, will thus become the fifth largest IT services company in India in terms of current market capitalization.
The two companies had announced their merger in May 2022. L&T Group Chairman AM Naik said the merger has been approved by both the Mumbai and Bengaluru benches of the National Company Law Tribunal in two separate orders.
The merger will help L&T achieve its goal of expanding the IT services to 25 percent of the group's total business by 2026, he said.
Naik said that currently, the merged entity along with L&T Technology Services are at $5.6 billion in revenue. Next year, LTIMindtree alone will cross $5 billion in revenue, he 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% of the merged entity. The record cate to determine the eligible shareholders of Mindtree for issue of equity shares of LTI is fixed as November 24, 2022.
LTIMindtree, the combined entity will have a portfolio of more than 750 clients , and nearly 90,000 professionals.
"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. The highly 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," said A. M. Naik, Group Chairman of L&T and Chairman of LTIMindtree
"We are grateful to the authorities for the swift passage of the proposed transaction through statutory processes and for its approval in a record time. 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," said S. N. Subrahmanyan, Chief Executive Officer and Managing Director of L&T, and Vice-Chairman of LTIMindtree.
Mindtree CEO Debashis Chatterjee will lead the combined entity.
"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," he said.
Larsen and Toubro Infotech posted an about 23 per cent increase in its consolidated net profit at ₹679.8 crore for the quarter ended September 2022.
Mindtree said its consolidated net profit for the quarter ended September 2022 came in at ₹508.7 crore, growing 27.5 percent.
The L&T Infotech shares on Monday ended 2.05 per cent higher to ₹5,161.20 and Mindtree scrip rose by 2.81 per cent ₹3,766.35.
