Why Happiest Minds share price slipped 9% post deal with ITC infotech - We specifically ask the mgmt on the 2 concerns in our interview
#1: No premium
Promoters get cash at ~Rs 395 for a 22% stake
Happiest Shareholder get a swap into a newly listed ITC Infotech with Implied value around Rs 405 vs yesterday close price of ~408
Stk is dn 75% + from all time high of ~1580
#2: NO open offer
Street was expecting a complete promoter stake sale (44%) followed by open offer
There will be NO open offer, despite transfer of control
ITC infotech shareholders get
Listing
Control with promoter holding at ~73.4%
No open offer required
That said,
The two businesses together start at ₹7,033 crore FY26 revenue
The combined entity is targeting >$1 billion revenue by FY28E.
management sees ~10% revenue synergies and ~100 bps margin expansion, driven by larger deals, cross-selling, higher utilisation and cost efficiencies.
EPS accretive in the first full year of combined operations.
#HappiestMinds #ITCIInfotech #CNBCTV18 #TechAtWork
Happiest Minds: ITC Infotech To Acquire 22.1% Stake For Rs 1,329 Cr
Co-Chairman & CEO, Joseph Anantharaju & MD, Venkatraman Narayanan To @CNBCTV18News
- ITC will hold approx 74% of the combined company post-integration
- There will be no open offer under the current
