All decks cleared for LTI’s merger with Mindtree

• LTI and Mindtree will start functioning as a single entity from November 14, 2022.
  
  
• Mindtree will be delisted and LTI will be renamed LTI-Mindtree.
  
  
• 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 record date for issue of equity shares of LTI pursuant to the scheme is November 24, 2022.
  

Larsen & Toubro (L&T) Group on Monday said that National Company Law Tribunal (NCLT) has approved the scheme of amalgamation and arrangement between L&T Infotech and Mindtree. The Mumbai and Bengaluru benches of NCLT have approved the scheme, under provisions of the Companies Act, 2013.

Both the companies will effectively start functioning as a single entity from November 14, 2022. Mindtree will be delisted and LTI will be renamed LTI-Mindtree. 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 date to determine the eligible shareholders of Mindtree for issue of equity shares of LTI pursuant to the scheme is fixed as November 24, 2022.

“LTI-Mindtree merger will create the sixth largest IT company by revenue and fifth largest by market cap. The IT sector will be affected due to geopolitical tensions and more but the merged entity will be better equipped to stand up to it,” said A M Naik, the group chairman of L&T and chairman of LTIMindtree, in a press conference.

“The merged entity will have benefits of scale, streamlined delivery and presence across verticals. The work ethics of Mindtree and LTI are consistent and anticipate no HR challenges with integration,” said Debashis Chatterjee, CEO and MD of LTIMindtree. The merged entity will have an employee strength of 90,000.

Naik also said that the attrition problem of the IT sector might ease, going ahead. “There has been a war-like situation and war itself. The first thing that companies will cut is overheads that will include IT. The IT industry attrition is around 23-24% and it might come down by 4-5%,” he said without giving a timeline.