The merger of Larsen & Toubro Infotech (LTI) and Mindtree received approval from National Company Law Tribunal (NCLT) and subsequently both the companies would be operating as a merged entity from November 14, 2022, said A. M. Naik, Group Chairman, L&T and Chairman of LTIMindtree.
Mumbai and Bengaluru Benches of NCLT have approved the scheme of amalgamation and arrangement between the two companies and their respective shareholders and creditors under section 230-232 and other applicable provisions of the Companies Act, 2013, said Naik in a media conference on Monday.
This approval cleared the way for the merger of the two independently listed companies as LTIMindtree, a scaled-up IT services provider with a client portfolio of more than 750 leading global enterprises from all key industry verticals, and nearly 90,000 professionals spread in more than 30 countries across five continents, he said.
As part of the merger, all shareholders of Mindtree would be issued shares of LTI in the ratio of 73 shares of LTI for every 100 shares of Mindtree. The parent company, L&T, would hold 68.73% of the merged entity. The record date to determine the eligible shareholders of Mindtree for the issue of equity shares of LTI pursuant to the scheme is fixed as November 24, 2022, Mr. Naik further said.
S. N. Subrahmanyan, Chief Executive Officer and Managing Director of L&T, and Vice-Chairman of LTIMindtree, who played a key role in bringing Mindtree to L&T stable said this integration was much more than just the coming together of two successful companies. but was about turning the collective wisdom of the two companies into a much larger force.
“Amid the proliferation of new business models and revenue streams in a rapidly converging world, LTIMindtree will help businesses proactively take on and shape the future by harnessing the full power of digital technologies,’‘ said Mr. Debashis Chatterjee, Chief Executive Officer and Managing Director of LTIMindtree.
Attrition will come down in 12 months, forecasts Naik
Attrition in the tech industry would come down by 4 to 5% in the next 12 months from the current 20-plus levels, Mr. Naik forecast.
“Attrition is still in the range of 23-24%. With the kind of geopolitical issues that are existing, the first thing that companies will cut is overheads. We expect attrition to come down by 4 to 5% in the next 12 months,’‘ he added.