AM Naik, Group Chairman, L&T and Chairman, LTIMindustrie. file | Photo Credit: Paul Noronha
merger of Larsen & Toubro Infotech (LTI) and Mindtree have received approval from the National Company Law Tribunal (NCLT) and the two companies will subsequently operate as a merged entity with effect from November 14, 2022, said AM Naik, group chairman, L&T and LTIMindtree chairman he said.
Naik said in a media conference on Monday that the 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. given.
The approval cleared the way for the merger of the two independently listed companies to form LTIMindtree, an IT services provider with a client portfolio of over 750 leading global enterprises from all major industry verticals, and around 90,000 professionals across 30 spread over more. countries on five continents, he said.
As part of the merger, all shareholders of Mindtree will be issued shares of LTI in the ratio of 73 shares of LTI for every 100 shares of Mindtree. The parent company, L&T, will own 68.73% of the merged entity. Mr Naik further said that the record date for determining the eligible shareholders of Mindtree for issue of equity shares of LTI as per the plan has been fixed as November 24, 2022.
SN Subrahmanyan, chief executive officer and managing director of L&T and vice president of LTIMindtree, who was instrumental in bringing Mindtree into the L&T stable, said that this amalgamation was more than just two successful companies coming together. But it was about turning the collective wisdom of both companies into one greater force.
“Amid a proliferation of new business models and revenue streams in a rapidly changing world, LTIMindtree will harness the full power of digital technologies to help businesses actively grow and shape the future,” said Mr. Debashish Chatterjee, Chief said the Executive Officer and Managing Director of LTIMindtree.
Attrition will decrease in 12 months, predicts Naikoo
According to Mr. Naik’s forecast, the attrition rate in the tech industry will drop by 4 to 5% over the next 12 months from current levels of more than 20.
“Attribution is still in the range of 23-24%. With geopolitical issues that exist, the first thing companies will cut is overheads. We expect the number of job losses to come down by 4 to 5% in the next 12 months,” he said.