Mindtree Limited on November 14, 2022 received approval from National Company Law Tribunal (NCLT) for its merger with L&T Infotech (LTI). Mindtree has announced November 24, 2022 as the record date to determine the shareholders who will be eligible to receive the shares of L&T Infotech. You can check the announcement from the company here.
As a result, the shares of Mindtree will be suspended from trading from November 23, 2022 onwards and you will not be able to see these in holdings on Kite.
As per the scheme of amalgamation, shareholders of Mindtree will receive 73 shares of LTI for every 100 shares held in Mindtree.
Any fractional entitlements will be cash-settled and the amount will be directly credited to your primary bank account.
The credit of shares can take between 30 - 45 days from the record date. You’ll receive an email from CDSL once the shares are credited to your demat account.
After the credit of LTI shares, the company will have to take approval from the exchanges to list and start trading in the newly allotted securities.
The average price of allotted LTI shares will be calculated as follows: Invested value in Mindtree / The number of LTI shares received including fractional shares.
For example, if you had invested in 10 shares of Mindtree at a price of Rs. 3000, the invested value will be Rs. 30,000.
If you receive 7.3 shares of LTI, the average price will be Rs. 4,109.58 (30,000 / 7.3).
The fractional shares are cash settled, and the amount for these will be directly credited to your primary bank account as and when the trustee appointed by the company sells the shares.
If there is any fractional entitlement, the equivalent amount will be directly credited to your primary bank account after the trustee appointed by the company sells the shares.
All the fractional entitlements shall be consolidated and allotted to a trustee authorized by the Board of the Amalgamated Company who shall sell the shares at such time(s) and at such price(s) on the stock exchange, as such trustee deems fit, and shall distribute the net sale proceeds, subject to tax deductions and other expenses as applicable, to the members of the Amalgamating Company in proportion to their respective fractional entitlements.
Even if you hold less than 100 shares of Mindtree, you will receive an allotment of LTI shares.
For example, if you hold 3 shares of Mindtree, your allotment comes at 2.19 shares (3 x 0.73). 2 shares will be credited to your demat account. 0.19 will be fractional and the amount for this will be credited to your primary bank account.
All existing F&O contracts of Mindtree (November 2022, December 2022, and January 2022 expiry) will expire on November 22, 2022, and will be physically settled.
Also, no new F&O contracts will be introduced for trading. You can check the announcement from the exchange here.