According to intelligence sources, Larsen Toubro Limited is evaluating a merger between its two publicly traded software firms.
Both Mindtree Limited and Larsen & Toubro Infotech Limited are governed by the boards of software entities, a Mumbai-based engineering firm.
Both entities may consider the share swap ratio for a merger as early as next week, the report quoted sources as saying, as searched by Bloomberg.
Larsen acquired control of Mindtree in 2019. The Larsen Group holds approximately 61% stake in the company, and the market value of this stake is $8.3 billion.
L&T Infotech holds about 74% stake, with a market value of $13.6 billion, all information gathered by Bloomberg which is published.
The reason for the merger proposal could also be the digitization that came during the time of a Kovid-19 because during this time the businessmen used digitization more and more and the demand for information technology is growing at a fast pace
The news of the merger also affected the stock of both the companies and the shares of both the companies closed with a slight decline. The share of Mindtree saw a decline of 3.5% and the stock of L&T Infotech was down by 2.7%.
This news of the merger of both the companies can prove to be true and it can also be proved wrong because discussions are going on on this merger which may be possible and may also be canceled.