BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Motilal Oswal Report
Larsen and Toubro Ltd. announced the merger of Larsen and Toubro Infotech Ltd. and Mindtree Ltd., its two IT Services subsidiaries, on May 06, 2022.
The combined entity will be known as ‘LTIMindtree’ and will be led by Mr. Debashis Chatterjee, Mindtree’s current Chief Executive Officer. L&T Infotech’s CEO Mr. Sanjay Jalona has resigned, and his last working day will be decided mutually.
With L&T having majority holding in both companies (74%/61% in L&T Infotech/Mindtree), we expect the shareholder approval process to be smooth.
We see the complementary vertical presence at L&T Infotech and Mindtree as one of the key long-term benefits for the combined entity. While L&T Infotech generates 47% revenue from banking, financial services and insurance (18% of Mindtree’s revenue), technology (including communications and media) dominates (43%) at Mindtree (12% of L&T Infotech’s revenue). This concentration will moderate after the merger, as BFSI/technology will fall down to 35%/25%.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.