LTIMindtree shares allotted — Peer comparison, swap ratio and risks

After the merger of Larsen & Toubro Infotech and Mindtree, shares of the new company -- LTIMindtree listed on exchanges today, December 5. LTI will now be called LTIMindtree and the ticker will change to LTIM.

According to the swap ratio, if one has 100 shares of Mindtree, one will get 73 shares of LTI. So, now, those extra shares of LTIMindtree will now be available for trading.

The merged entity is the sixth largest Indian IT company by way of revenues, the annualized revenue run rate if you analyze the quarter two revenues should be inaccessible $4 billion. It emerges as the fifth largest IT company by market capitalization with a market cap closer to 1.5 lakh crore. It overtakes Tech Mahindra as well.

The portfolios of the two companies seem fairly complementary. The company in an interview with CNBC-TV18 just last month had said that the two companies together would have more than 700 clients, but only 10 to 12 of them overlap.

Some shareholders holding both Mindtree & LTI may look to pare down holding. Moreover,  the stock is trading at around 30 times its FY24 estimated P/E valuation.