IT stocks dropped in morning trade on Monday, with Tech Mahindra tumbling over 6 per cent, amid concerns over the steep hike in US H-1B visa fees. Shares of Tech Mahindra tumbled 6.45 per cent, LTI Mindtree slumped 5.61 per cent, Persistent Systems dropped 5.51 per cent, Hexaware Technologies tanked 5.14 per cent and HCL Tech fell by 4.24 per cent on the BSE.
L&T Infotech and Mindtree on Friday announced a mega-merger to create an efficient and scaled-up IT services provider, exceeding $3.5 billion in combined revenue, according to a statement. The name of the combined entity will be 'LTIMindtree', the statement said. In an all-share deal, L&T Infotech will offer 73 shares for every 100 shares of Mindtree.
Mindtree on Thursday said it will acquire the NxT Digital Business from Larsen and Toubro (L&T) for Rs 198 crore, a move that will enable the mid-sized IT firm to capture opportunities in the IoT and Industry 4.0 space. The acquisition would enable Mindtree to capture opportunities in the IoT and Industry 4.0 market by leveraging NxT Digital Business capabilities to cross-sell and create holistic solutions for new prospects as well as for existing clients, a regulatory filing said. Capability in this space will bolster Mindtree's vision to leverage existing digital strengths and aim to become a 'Go-to business transformation partner' for clients, it added.
Chatterjee said the compNY is not aware of any major client concerns at this point.
According to a source, the founders, which include Subroto Bagchi, N S Parthasarathy and Krishnakumar Natarajan (who together hold about 13 per cent), may look at selling their shares as well in the open offer that concludes on June 28.
Acquisitions are done to synergise with existing offerings of firms; to strengthen or enter new areas, platforms or geography; find new customers for its products; keep parts of the acquired organisation, perhaps the digital in the case of Mindtree, and to sell others to increase its own value. Never is it to grow the acquired organisation more than itself, says Pankaj Chandra.
In a deal that had marked India's first-ever hostile takeover bid in the IT space, L&T had bought 20.32 per cent shares in Mindtree from V G Siddhartha and his coffee enterprise for over Rs 3,000 crore in March. Nalanda India Fund and Nalanda India Equity Fund have also sold majority of their holdings in Mindtree in L&T's open offer.
'If (by the end of the deal) the talent that owns the customer relationships is not there, will L&T still get the value it is looking for?'
Reports had suggested that the construction major had asked Ravanan to step down as the new owners were preparing the grounds for a top management overhaul at the Bengaluru-based company.
The attempted hostile takeover bid of Mindtree by Larsen & Toubro is a "grave threat" and "value destructive" to the organisation collectively built over 20 years, the promoters said pledging to "unconditionally oppose" the hostile takeover attempt.
L&T has acquired Cafe Coffee Day-owner V G Siddhartha's 20.32 per cent stake in Mindtree and has also placed an order with brokers to pick up another 15 per cent shares from the open market.
L&T is pursuing a controlling stake of 66 per cent in the mid-tier IT firm, for Rs 10,700 crore.
L&T -- which has two subsidiaries L&T Infotech and L&T Technology Services -- is keen to bring Mindtree under its fold to exponentially raise its client base and product offering.
While the leadership change in Mindtree is yet to happen, there's a buzz that the co-founders of the IT firm may float another company.
Mindtree plans to recommend to its investors not to subscribe to the open offer, citing low offer price, among key reasons. The founders were exploring several other options, including coming out with a counter open offer, with the backing of a financial investor.
Mindtree faces the risk of management change as its largest shareholder is reportedly in talks with a rival technology firm to offload his stake.
With this rejig, Mindtree's board will now have 12 board members from eight.
VMUnify, incubated from staffers' idea, to be spun off into an independent company.
In an email interview with Business Standard, Mindtree's co-founder and chairman says the company was designed to outlive the founding team and no such departure is a loss.
IT firm Mindtree on Friday said its co-founder and executive chairman Ashok Soota has resigned from the post in order to take on a new business venture.
L&T received bids for 5.54 crore shares on Thursday at the close of market hours. This is 108.09 per cent higher than the total offer, as per information available on the BSE. The open offer - for Rs 980 a share - opened on June 17 and is scheduled to close on Friday.
"Many people have to be tended here. I have an organic feel to MindTree. A gardener's job is never over," Bagchi told the media, adding that his new role was apt given MindTree's history. Information technology (IT) firms of late have been introducing catchy designations like 'Chief Fun Officer', 'Chief Happiness Officer', and even 'Chief Energising Officer' as they revamp their organisations and the roles of some of their senior executives.
If growth reverts to the pre-Covid level, a lot of people may have to temper their rosy optimism, points out Debashis Basu.
'Our growth in banking, financial services, and insurance (BFSI) is a prime example.'
The open offer is slated to commence on June 17 and close on June 28
City-based mid-sized IT services company MindTree Consulting has acquired Linc Software Services Private Limited in an undisclosed stock and cash deal.\n\n
The move comes at a time when the traditional software maintenance and support works, once the bread and butter for export-driven IT services business, are slowly drying up.
In calendar year 2024, the stock price of Trent has zoomed 160% As compared to the 18% rally in the BSE Sensex during the same period. It has outperformed the market in the past 10 consecutive years.
In a major consolidation in the domestic IT industry, MindTree, a listed IT services company, will acquire Aztecsoft, another listed outsourcing product development firm. MindTree, which has bought four companies in the last eight years, will acquire 32.57 per cent stake in Aztecsoft from e4e Holdings, Mauritius, in an all cash deal for around Rs 117 crore (Rs 1.17 billion).
The Bangalore-based company has revamped itself as it aims to simplify its business structure and focus on being a specialist in certain areas.
MindTree tried its hand at making wireless handsets but failed. Now co-founder Ashok Soota has moved on to start a competing business.
IT services provider MindTree Consulting is restructuring salary offers to its trainees over an 18-month period by staggering payments and linking these to tenure. The plan will be applicable to 250 freshers who joined the company in March this year. Another 250 people are expected to join in October this year.
'I get enormous pleasure from seeing the uplift of an underprivileged or poor person.' 'I feel elated when I walk on the street and see someone who pushes a handcart talking on a cell phone.' A revealing glimpse from Peter Casey's The Story of Tata: 1968 to 2021.
This year, MindTree improved from 68th in 2007 and has been ranked 54th, while also being named one of the 20 best companies by services offered in the category of product research, development and manufacture. The list is published in May 5 issue of Fortune magazine. Winners were chosen through an evaluation process that considers four key criteria -- size and growth in revenue, employees, development centres and countries served customer experience.
Albert Hieronimus tells Bibhu Ranjan Mishra and Pradeesh Chandran, he is optimistic.
MindTree, the Bangalore-based information technology services provider, has bagged the application development services segment of the Nandan Nilekani-headed Unique Identification (UID) project, renamed as 'Aadhaar'. This is the first of the many IT projects that has come up for bidding till date.
The company will grow better than the industry
The Reserve Bank on Friday said FII investment in MindTree has reached the trigger limit under portfolio investment scheme and purchase of further equity shares of company will require its approval.
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