Merger of L&T Infotech and Mindtree

Recently, Larsen & Toubro (L&T) announced the merger of its two software companies, Larsen & Toubro Infotech (LTI) and Mindtree.

What is the market capitalization of both companies?

Larsen & Toubro Infotech (LTI) has a market capitalization of Rs 1.03 lakh crore, whereas Mindtree has a market capitalization of Rs 65,285 crore.

What will the combined entity be called?


Who will lead the LTIMindtree?

Mindtree CEO Debashis Chatterjee will lead the combined entity of “LTIMindtree”.

What will be the aggregate revenue of  LTIMindtree?

Around $3.5 billion.

How the shares will be adjusted after the merger?

All shareholders of Mindtree will be issued shares of Larsen & Toubro Infotech (LTI) at the ratio of 73 shares of Larsen & Toubro Infotech (LTI) for every 100 shares of Mindtree.

What are the benefits of the merger?

  • The highly complementary businesses of Larsen & Toubro Infotech (LTI) and Mindtree will make this integration a ‘win-win’ proposition for customers, investors, shareholders, and employees.
  • Merger will combine the strengths of both these organizations to unlock synergies through economies of scale, cross-vertical expertise, and talent pool.
  • The combined entity will enable it to tap into broader market prospects, reduce costs, and lower risk.
  • By market capitalization, the combined entity will surpass Tech Mahindra to become the fifth-largest IT services provider.

What is the status of IT firms in India?

Large IT outsourcing firms are expanding into areas such as cybersecurity, and automation, and moving beyond lower-margin traditional back-room services. Software companies have been witnessing a surge in demand, as digitization got accelerated during COVID-19.

Which company tops in terms of market valuation?

Currently, TCS ranks first among the IT firms with the highest market valuation. TCS is followed by Infosys, HCL Tech, and Wipro.




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