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Case Study: L&T Infotech and Mindtree Merger, Valuation Mechanics

A valuation case study of the 2022 amalgamation of Mindtree into Larsen & Toubro Infotech, which created LTIMindtree. Built for experienced retail investors, active traders and HNIs who hold shares through mergers and want to judge the terms for themselves. Starts with how L&T came to control two listed IT companies, including the 2019 hostile takeover of Mindtree, then takes the scheme apart: the 73 for 100 swap ratio, the valuation report and fairness opinion, the approval path through shareholders, exchanges, SEBI and the NCLT. Works through the numbers a shareholder should run: implied exchange ratios from market prices, relative multiples, implied premium, L&T's ownership after the swap, EPS accretion and the merger arbitrage spread. Covers tax on a share swap, fractional entitlements and the later Nifty 50 entry, and ends with a swap ratio checklist you can apply to any Indian merger.

MODULES

6

DURATION

~3.5 hrs

TRACK

Stock Market Basics

Access Level

LEARNER

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Everything included

Full Text Playbooks

Actionable Exercises

Mobile Reading Mode

Lifetime Updates

Curriculum Breakdown

Chapter 1: How L&T Came to Own Two Listed IT Companies

4 Lessons

Why the LTI and Mindtree Merger Is a Masterclass in Swap Ratio Valuation9 min read

L&T Infotech: From Captive IT Arm to a 2016 Listing10 min read

The Hostile Takeover of Mindtree in 2019: The Siddhartha Stake, the Open Offer and the Founders12 min read

Two Listed Siblings Under One Parent: Why the Overlap Could Not Last10 min read

Chapter 2: The Scheme of Amalgamation

3 Lessons

Reading the Scheme: Who Merges Into Whom, and Why the Direction Matters11 min read

The 73 for 100 Swap Ratio: What It Says and What It Does Not11 min read

The Approval Path: Board, Exchanges, SEBI, Public Shareholder Vote and NCLT11 min read

Chapter 3: Valuation Mechanics, Worked Through

6 Lessons

Inside a Valuation Report: How Independent Valuers Weight Market, Income and Asset Approaches12 min read

The Market Price Method: Implied Exchange Ratios From Volume Weighted Average Prices12 min read

Relative Valuation: P/E, EV/EBITDA and Revenue Multiples of the Two Companies12 min read

Implied Premium or Discount: Did Mindtree Shareholders Get a Fair Deal11 min read

Ownership Arithmetic: How L&T's Stake Moved After the Swap11 min read

EPS Accretion and Dilution: Running the Combined Numbers12 min read

Chapter 4: The Market's Verdict

3 Lessons

The Merger Arbitrage Spread: Tracking Mindtree Against the Swap Ratio12 min read

Why the Spread Does Not Close at Once: Deal Risk, Time Value and Cost of Carry11 min read

Record Date, Fractional Entitlements and the Last Day of Mindtree on NSE10 min read

Chapter 5: After the Merger

3 Lessons

Tax on a Share Swap: Cost of Acquisition, Holding Period and Section 4711 min read

From Two Midcaps to One Nifty 50 Stock: Index Inclusion and Passive Flows10 min read

Integration and Results: What the Numbers Showed After 202211 min read

Chapter 6: The Investor's Toolkit

2 Lessons

A Swap Ratio Checklist for Any Indian Merger11 min read

Case Synthesis: The Timeline, the Numbers and the Lessons From LTIMindtree10 min read