On November 14, the L&T Group announced that the merger of Mindtree and LTI (Larsen & Toubro Infotech) had become operational. LTI Mindtree, the newly created entity, will start trading on November 24. After the merger, Mindtree shareholders will receive 73 LTI shares for every 100 shares they now own. In May 2022, a merger between LTI and Mindtree was announced. L&T, the merging entity's parent business, will own 68.73% of LTIMindtree.
The record date for deciding which Mindtree Limited shareholders would receive equity shares of the merged business has been set by the boards of directors of LTI and Mindtree as November 24, 2022.
Debashis Chatterjee, CEO of Mindtree, has been appointed the combined company's Chief Executive Officer and Managing Director for a period of three years.
L&T Infotech shares were up 0.8% at 5,205 today, while Mindtree shares were trading marginally lower at 3,754. Over 90,000 employees will work for the merged entity, which will have operations in 30 countries.
If there are fractional shares, they will be combined and given to a trustee who has been given permission by the LTIMindtree board. This trustee will sell the shares and distribute the proceeds to investors according to their individual fractional entitlements.
In the case of resident shareholders, there is no TDS obligation for money received from fractional entitlements.“A fractional share refers to a unit of stock that is less than one full share. Fractional shares arise due to stock splits, bonus shares, and similar corporate actions. Fractional shares are not traded in the markets,". According to Zerodha,