ITC shares rise 5%; Happiest Minds falls 8% after FMCG major acquires IT firm. What shareholders must know
ITC shares rose, while Happiest Minds fell, after ITC Infotech announced plans to acquire and merge with the Bengaluru-based IT services firm. ITC Infotech will first buy a 22.1% stake from founder Ashok Soota for Rs 1,330 crore, followed by a share swap. After the merger, ITC will hold 73.4% of the combined entity, while Happiest Minds shareholders will own 19%. The deal will also give ITC…
ITC's subsidiary, ITC Infotech, announced its intent to acquire Happiest Minds Technologies, a Bengaluru-based software services firm, leading to a 5% increase in ITC shares on the BSE. Conversely, Happiest Minds' stock plummeted by over 8% to Rs 373 per share. ITC Infotech initially plans to acquire a 22.1% stake in Happiest Minds from founder Ashok Soota for Rs 1,330 crore, followed by a share swap where shareholders receive 25 ITC Infotech shares for every 81 Happiest Minds shares.
Post-merger, ITC Infotech will hold a 73.4% stake, with the rest distributed among Soota, public shareholders, and ITC Ltd. Happiest Minds' equity value was set at Rs 6,167 crore, while ITC Infotech was valued at Rs 11,920 crore. Together, they have a combined valuation exceeding Rs 18,000 crore. Both companies share complementary strengths and a future-oriented vision, which will facilitate synergies in AI, digital engineering, cloud, data, analytics, cybersecurity, and industry-specific technology solutions.
The merged entity will become India's 11th-largest IT services company, with a projected fiscal 2026 revenue of Rs 7,033 crore.
Written by urgent.news from The Economic Times - Top News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
