Mindtree-LTI Merger: Impact on Investors?1 min read
Mindtree (NSE: MINDTREE) is merging with Larsen & Toubro Infotech (NSE: LTI), to form a new entity LTI Mindtree. Thus, the equity shares of Mindtree Ltd shall not be available for trading w.e.f 23rd November 2022.
What does it mean for Investors?
Following the Merger, Mindtree shareholders will receive 73 LTI shares for every 100 Mindtree shares they hold on the record date, November 24, 2022. For example, if you hold 200 Mindtree shares in your Demat account, you will be entitled to receive 146 LTI shares in your Demat account. In the case of fractional shares, the due settlement will take place in cash, and the amount will be transferred directly to the shareholders’ primary bank account.
What happens to Mindtree F&O contracts?
In consideration of the above merger event, the existing F&O contracts of Mindtree with expiration months of November 2022, December 2022, and January 2023 will expire and be automatically physically settled on November 22, 2022.
What does this mean for F&O Traders in Mindtree Ltd?
As the settlement of the contracts will be on a physical basis, a margin for physical delivery will be charged for all open positions in futures and in the money options category, which could go up to 100% of the contract value.
We, therefore, request you close out all positions in the derivatives segment by noon on November 22 to avoid physical delivery, otherwise, RMS will take appropriate action without further notice.
The new entity, LTI Mindtree, will begin trading on the bourses on November 24, 2022.
Link to the circular: https://archives.nseindia.com/content/circulars/CMTR54200.pdf