Happiest Minds to Merge with ITC Infotech, Accelerating $1B Revenue Goal to FY28
Happiest Minds Technologies will merge with ITC Infotech, accelerating its USD 1 billion revenue target to FY28. Promoter Ashok Soota will divest 22.1% stake for ₹1,330 crore. Shareholders will receive 25 ITC Infotech shares for every 81 Happiest Minds shares. The combined entity targets ₹7,033 crore revenue by FY26, ranking it 11th in India.
The merger of two significant IT companies, the acceleration of revenue targets, and the significant stake divestment by the promoter are material events that will have a substantial impact on the company's future trajectory and market standing.
The merger is expected to accelerate revenue growth, achieve significant scale, and leverage complementary strengths, leading to a stronger market position and value creation for stakeholders.
Happiest Minds Technologies Limited has announced a proposed merger with ITC Infotech, a move expected to accelerate its vision of becoming a USD 1 billion revenue company to FY28 from the earlier target of FY31. The transaction involves the divestment of 22.1% of promoter Ashok Soota's stake for approximately ₹1,330 crore, to be completed in two tranches. Tranche 1 is contingent on CCI approval expected in Q3 of the current year, and Tranche 2 will follow shareholder approval for the merger, anticipated in Q1 of FY28.
Under the scheme of amalgamation, Happiest Minds shareholders will receive 25 shares of ITC Infotech for every 81 shares held. These shares will subsequently be listed on the BSE and NSE, with listing expected in Q2/Q3 of FY28. Post-merger, ITC Limited will hold 73.4% of the combined entity, while public shareholders, including Mr. Soota with a 7.55% stake, will hold the remaining 26.6%. The relative valuation, based on reports from PwC and Grant Thornton, valued Happiest Minds at 15.1x FY26 EBITDA and ITC Infotech at 13.6x FY26 EBITDA.
The combination aims to leverage complementary strengths, with Happiest Minds contributing capabilities in AI, digital, product engineering, cloud, data, and cybersecurity, while ITC Infotech brings expertise in enterprise transformation, SAP, product lifecycle management, and Industry 4.0. The merged entity is projected to have a pro-forma FY26 revenue of approximately ₹7,033 crore, ranking it as the 11th largest IT services company in India. It will serve over 800 customers with more than 19,000 professionals across more than 30 countries. The transaction is expected to be consummated within 15 months.
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Happiest Minds Technologies Limited filed this with the NSE as a statutory disclosure, categorised under merger. It is a primary document, not a recommendation, and the desk marks it high impact, which is the band that most often changes something.
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See the model portfoliosA plain-language summary of a public exchange filing by Happiest Minds Technologies Limited. Read the original for the full detail.