Happiest Minds Tech share price crashed as much as 10% in morning trade on the BSE on Tuesday, 1 September, a day after the company announced a merger with ITC Infotech. Happiest Minds Tech shares opened at ₹407.50 against its previous close of ₹407.15 and crashed 10% to hit an intraday low of ₹366.20.
Happiest Minds announces merger with ITC Infotech
The IT company on 31 August announced it was merging with ITC Infotech, a wholly owned subsidiary of ITC, to “create a scaled, AI-first global technology services enterprise with $1 billion revenue by FY28.” The merger is subject to statutory, shareholder, and regulatory approvals, including those of the Competition Commission of India, the stock exchanges, and the National Company Law Tribunal.
According to the exchange filing, ITC Infotech will acquire an aggregate minority stake of nearly 22.1% in Happiest Minds from the promoter and promoter entities across two tranches for a total consideration of ₹1,330 crore, at an average price of nearly ₹395.
The merger will be effected through a share swap after which Happiest Minds’ shareholders will receive 25 shares of ITC Infotech for every 81 shares of Happiest Minds held by them. ITC will be the promoter of the merged company, with a nearly 73.4% stake.
In a media statement, the company said the proposed merger “will bring together two highly complementary organisations with shared values, strong people-centric cultures, and a common vision of helping enterprises accelerate AI-led transformation.”
“The combined company will unite Happiest Minds’ strengths in AI, digital engineering, cloud, data, analytics and cybersecurity with ITC Infotech’s deep expertise in enterprise transformation, SAP, product lifecycle management (PLM), cloud, industry 4.0 and industry-specific technology solutions,” said the company.
(This is a developing story. Please check back for fresh updates.)
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