- 15 Nov 2022
- ICICIdirect Research
LTI MINDTREE MERGER RECEIVES NCLT APPROVAL WITH RECORD DATE OF NOVEMBER 24, 2022
LTIM - 5850 Change: -144.65 (-2.41 %)News:
LTI & Mindtree has informed the stock exchange that they have received the approval for merger from both Bangalore & Mumbai NCLT Bench. LTI Mindtree to start operating as merged entities effective 14th Nov 2022. The company further informed that 24th Nov 2022 will be the record date for determining the eligible shareholders for allotment of shares of the merged entity. 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%. The company has appointed Mr. Debashis Chatterjee as CEO & MD for period of 3 years till November 2025, Mr. Venugopal Lambu as Whole Time Director for a period 3 years till November 2025 and Mr. Vinit Teredesai as CFO.
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Both the companies while declaring their Q2 results had indicated that the merger proceedings are in the last leg of regulatory approvals. Merged entity will now be the 5th largest IT services company with Market capitalization of over Rs 1,50,000 crore. Current market prices are largely as per swap ratio. The companies are looking for faster integration by Q4FY23. The combined entities will be have access to over 750+ clients & 90,000+employees and minimal overlapping (24% of the revenue mix). As on H1, the combined entity has over Rs15,000 crore of revenues and 19%+ EBITDA margin.
Impact:
Neutral