Larsen & Toubro Infotech and Mindtree will start working as one company from today, group chairman of Larsen & Toubro AM Naik said. Calling today a 'historic' day, Naik said all shareholders of Mindtree will receive 73 shares of LTI for 100 shares of Mindtree. The record date for share allotment will be November 24. L&T will hold 68.73 percent stake in Mindtree, Naik said, adding that the merged entity would continue to remain listed.
Naik said the merger was approved by both the Bengaluru and Mumbai benches of the National Company Law Tribunal in separate orders.
He said at present, the merged entity and L&T Technology Services is at a revenue of $5.6 billion and next year, the merged entity alone would cross revenue of $5 billion.
Mindtree will be delisted from the stock exchanges and LTI will be rebranded as LTIMindtree from November 24 said Vinit Teredesai, the Chief Financial Officer of the combined entity, Monecontrol.com reported.
However, LTTS and LTI-Mindtree would continue to operate independently even though they both are a part of the L&T Group.
Naik said he hopes the merged entity would have a growth rate of double digits in the next five years.
The merger will enable L&T to achieve its expansion goal of IT-enabled services to 25 percent of its total business by 2026. "It might be even higher when it comes to market cap," Moneycontrol.com reported Naik as saying.
On the recent moonlighting debate in the IT sector, Naik said his company does not stand for it.
