LTIMindtree Shares Turn Volatile After Relisting
From Monday, new shares of LTIMindtree allotted to Mindtree shareholders are available for trading.
Shares of LTIMindtree Ltd. turned volatile on relisting after the share swap following the merger between L&T Infotech Ltd. and Mindtree Ltd.
While the erstwhile Mindtree stock was delisted from stock exchanges, L&T Infotech has been trading on the bourses with the new name LTIMindtree since Nov. 24. From Monday, new shares of LTIMindtree allotted to Mindtree shareholders are available for trading as well.
The stock opened 0.28% higher at Rs 5,080 on the BSE but erased gains to trade 1.55% lower at 10:57 a.m. compared with a 0.43% decline in the benchmark BSE Sensex.
LTIMindtree has become India’s fifth largest IT services company by market capitalisation.
LTI-Mindtree Merger Overhang Ends, L&T Infotech CEO Resigns, KMP Attrition Holds Key: Dolat Capital
“LTIMindtree furthers L&T’s strategic vision of growing IT services into one of the core pillars of our overall business over the next few years," said AM Naik, group chairman at L&T and chairman at LTIMindtree.
LTIMindtree combines LTI’s engineering and Mindtree’s software DNAs, blending their problem-solving and digital-first strengths into a unique value proposition for our clients, further reinforcing L&T’s acclaimed tradition of innovation, excellence, trust, and empathy.A.M. Naik, Group Chairman of L&T Group and Chairman of LTIMindtree
How Are The Shares Allotted?
Investors that owned the Mindtree shares in the demat account till Nov. 24, are eligible for LTIMindtree shares.
A shareholder will get 73 fully paid-up shares of Re 1 each of LTIMindtree for every 100 shares of Rs 10 each of Mindtree.
The Mindtree investors holding fewer than 100 shares will also get LTIMindtree shares. For every 10 shares of Mindtree, they will be allotted 7.3 (10x0.73) LTIMindtree shares.
That means, such investors will get 7 shares of LTIMindtree, and 0.30 will be the fractional entitlement for which the amount will be credited to the bank account linked to the shareholder's demat account.
LTI Listing Ceremony At BSE. (Picture Credit: Vijay Sartape)
L&T Infotech & Mindtree Merger
In May 2022, the boards of directors of LTI and Mindtree approved at their respective meetings, a composite scheme of merger of the infotech companies under the Larsen & Toubro Group and created a combined entity with a revenue of more than $3.5 billion. Engineering and construction major L&T officially acquired a controlling stake in the Bengaluru-based Mindtree in 2019.
LTI-Mindtree, with a workforce of 90,000 professionals spread over 30 countries and across five continents, will be the fifth largest IT services company in India by market value.
The amalgamation will see the two companies form LTIMindtree, a merged entity with a client portfolio comprising 750 global enterprises from key industry verticals.