LTIMindtree merger record date, ratio, news | Mindtree Share Price NSE

LTIMindtree Merger News, LTIMindtree Merger Ratio, Record Date, LTIMindtree Share Price NSE: The L&T Group has announced operationalisation of the merger of Mindtree with Larsen & Toubro Infotech or LTI. The new entity will be known as LTIMindtree and it will be the fifth largest software company in terms of market capitalisation (Rs 1.53 lakh crore of Monday closing).

According to an exchange filing, the new company will be headquartered in Mumbai and will be independent of L&T. This means, that the head of the new entity will not be on the board of L&T. AM Naik is the chairman of the new entity while L&T chief executive SN Subrahmanyan will be vice-chairman.

LTIMindtree Merger Record Date

The board of directors of both companies have decided November 24 as the record date in order to determine the eligibility of shareholders for allotment of equity shares of the amalgamated company. The new entity, LTI Mindtree, will begin trading on November 24.

LTIMindtree Mmerger Ratio

According to the exchange filing, 73 shares of the new entity LTI will be granted to each shareholder of Mindtree for every 100 shares of Mindtree.  

"73 fully paid up equity shares of Re. 1/- each of LTI shall be issued and allotted for every 100 fully paid-up equity shares of Rs. 10/- each held in Mindtree," the company said in a filing. 

It will have 90,000 employees on its rolls, taking the overall headcount of the software businesses to 1.2 lakh, which includes that of LTTS, spread across in over 30 countries across five continents.

L&T announced a takeover bid on the Bengaluru-based Mindtree - promoted by N Krishnakumar, NS Parthasarathy, Subroto Bagchi and Rostow Ravanan, who along with their families owned 13.32 per cent in the firm - in March 2019. 

And in June, L&T completed an open offer at Rs 980 a share and took 60 per cent control after it could buy out the 20.4 per cent stake held by the coffee baron VG Siddhartha and his affiliate firms.

Combined L&T has paid close to Rs 11,000 crore for the takeover, including the Rs 4,988.82 crore paid in the open offer for buying the 31 per cent additional stake at Rs 980 a share.

Meanwhile, the share price of MindTree has dropped by 1.56 per cent, or Rs 58.75, to trade at 3,707 at NSE. The scrip had setteled at Rs 3,766.75 in the previous session. The 52-week range of the scrip is Rs 5,060 and Rs 2,649. 

ALSO READ | Mindtree-Larsen & Toubro Infotech Merger: LTIMindtree - 90k employees, Rs 1.53 lakh cr m-cap, 5th largest IT firm and more - TOP THINGS