Happiest Minds managing director Venkatraman Narayanan said the merger with ITC Infotech is on track, with listing expected within a year. The company awaits approvals from the Competition Commission of India and Sebi. "It's going very well," Narayanan said. This ₹1,330 crore deal helps the firm target larger industry deals.
Happiest Minds managing director Venkatraman Narayanan said the proposed merger with ITC Infotech is progressing as planned, with the combined entity's listing expected within a year.
Mid-tier IT services company Happiest Minds said its merger with ITC Infotech is on track and it expects the listing and trading of new securities of the combined entity to begin within a year.
While board and shareholder approvals have been received, the company is awaiting a nod from the Competition Commission of India (CCI) and a review by stock exchanges and market regulator Sebi.
"It's going very well. So we are looking to tick all the boxes and within the time that we had set for ourselves so that we can get ahead with the marriage," managing director Venkatraman Narayanan said.
"The big one is the CCI, which we are hoping to get by November and SEBI also in the same time frame. Once that happens, then it's NCLT, shareholder approval and its all done."
ITC Infotech and Happiest Minds announced their merger earlier this year in a ₹1,330 crore deal, with ITC being the promoter of the merged company with about a 73.4 per cent stake. Happiest Minds said earlier that the merger would help the combined entity target larger deals and focus on broader capabilities at a time when artificial intelligence (AI) is upending the services industry and there is an increased focus on outcomes and vendor consolidation.
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Indian IT services companies have been on an acquisition spree over the past year as revenue growth has slowed and acquisitions have become a viable route to show some steady growth to investors. TCS, Infosys, HCLTech, Coforge and Persistent have been among the major companies that have acquired smaller counterparts. Such acquisitions are expected to gather pace as the macroeconomic environment continues to remain volatile.
"Merger is an opportunity when times are difficult. It works as a protection as well because you get a larger canvas which is growing at a higher rate," he added.
For the second quarter, Happiest Minds reported a 15 per cent year-on-year rise in net profit to ₹62.2 crore. Revenue was up 12.5 per cent YoY to ₹645 crore.
Growth in the second quarter was led by banking, financial services and insurance (BFSI) and healthcare, while the US led growth in terms of geographies. India contributed 18 per cent to the topline.