The amalgamation process of the two software units, Mindtree and Larsen & Toubro Infotech controlled by the Mumbai-based engineering conglomerate, is expected to be completed by December this year, and during this period, the two firms will continue to operate independently.
Two subsidiaries of Larsen & Toubro last month announced a mega-merger to create an efficient and scale-up IT services provider, generating over $3.5 billion in combined revenue.
According to exchange filings by the earlier companies, 73 L&T Infotech shares will be issued to Mindtree shareholders for every 100 shares. The combined entity of the parent company Larsen & Toubro Limited will hold 68.7% after the merger.
The combined entity will be named ‘LTIMindtree’, the companies said in a statement.
“We expect the merger to be completed in the next two quarters… It is going through regulatory approvals. Three-four agencies are involved in the process,” L&T Infotech chief operating officer Nachiket Deshpande told the news agency. PTI,
Larsen & Toubro acquired a controlling stake in Bengaluru-based Mindtree in 2019.
Deshpande said he expects demand for IT services to remain strong in the next three-five years and supply-side bottlenecks to ease in a few quarters.
“Once change begins in an organization, it cannot be stopped midway. Despite fears of a slowdown, most of the customers we spoke to said their IT spending is unlikely to decrease. “
The senior official said that L&T Infotech will expand its presence in several cities and several locations are being evaluated for setting up new offices.
“We believe that now instead of taking people to work, we should take the work to the people,” Deshpande said.
L&T Infotech on Friday opened its first center in Kolkata and said it plans to hire 4,000-5,000 employees in the eastern region in the next two-three years.
Larsen & Toubro had reported a 10 per cent rise in its consolidated net profit last month 3,620.69 crore for the quarter ended March, 2022.
The company posted a consolidated net profit of 3,292.81 crore in the year-ago period.
Consolidated earnings increased during the quarter under review 53,366.26 crore from 49,116.16 crore in the year-ago period.