Happiest Minds shares tank nearly 11 pc; ITC climbs nearly 4 pc

New Delhi, Sep 1 (PTI) Shares of Happiest Minds Technologies tanked nearly 11 per cent on Tuesday after it was announced that ITC Infotech will merge with the firm to create an AI-first enterprise with a USD 1 billion turnover by FY28.

The stock tumbled 10.92 per cent to settle at Rs 362.70 on the BSE. During the day, it lost 12.31 per cent to Rs 357.

At the NSE, the stock plummeted 10.87 per cent to end at Rs 362.70.

Shares of ITC, the parent firm of ITC Infotech, however jumped 3.98 per cent to end at Rs 266.45 on the BSE.

As a precursor to the merger, ITC Infotech will acquire a 22.106 per cent stake from Happiest Minds promoter Ashok Soota and Ashok Soota Medical Research LLP, according to regulatory filings on Monday.

Following the stake purchase,

Happiest Minds will be amalgamated with and into ITC Infotech.

The combined entity, with a global workforce of over 19,000 professionals, will bring complementary capabilities to deliver a full-stack value proposition for end-to-end solutions spanning build, intelligence, and operations while expanding into high-potential verticals including hi-tech, healthcare, and edtech.

The stake purchase will be executed in two tranches. The first tranche involves the acquisition of an 11 per cent stake at Rs 390 per share, followed by an 11.106 per cent stake at Rs 400 per share, according to regulatory filings.

Upon the merger becoming effective, ITC Infotech is proposed to be listed on the BSE and the National Stock Exchange (NSE).

According to the approved share swap ratio, ITC Infotech will allot 25 fully paid-up equity shares of Rs 10 each for every 81 shares of Rs 2 each held by Happiest Minds’ shareholders.

The transaction will result in ITC becoming the promoter of the combined entity with a 73.4 per cent stake. Post-merger, the current promoters of Happiest Minds will be reclassified as public shareholders with a 7.6 per cent holding in the combined entity. PTI SUM SUM ANU ANU