Shares of Mindtree and L&T Infotech declined on Monday after the announcement of the merger of the two companies to create the country's sixth largest IT company.
Shares of Mindtree tumbled 5.30 percent to end at Rs 3,195.65 on the BSE. During the day, the stock tanked 5.88 percent to Rs 3,176.
L&T Infotech also declined 3.13 percent to settle at Rs 4,449.45. During the day, it declined 3.90 percent to Rs 4,413.65.
Aiming at bigger deals from clients looking for digital services, L&T Group on Friday announced the merger of L&T Infotech and Mindtree, which will create the country's sixth-largest information technology company with combined revenue of USD 3.5 billion.
The engineering, projects, and construction major, which already owns a majority stake in both the companies, said as per the all-stock deal, shareholders of Mindtree will get 73 shares of LTI (L&T Infotech) for every 100 shares they hold. L&T will hold 68.73 percent in the merged entity which will be called 'LTIMindtree'.
The merger is expected to be completed in the next 11 months after the required approvals.
(With ANI inputs)
