The Larsen & Toubro group on Monday announced the merger of L&TInfotech (LTI) and Mindtree to create LTIMindtree with immediate effect.

The combined entity will become the sixth-largest IT services firm by revenue and the fifth-largest in terms of market capitalisation in India.

Earlier, the Mumbai and Bangalore benches of the National Company LawTribunal (NCLT) approved, through two separate orders, the scheme of amalgamation and arrangement between the two companies and their respective shareholders and creditors under sections 230- 232 and other applicable provisions of the Companies Act,2013.

The two companies announced their intent to merge in May 2022.

A statement from the L&Tgroup said the merger will form a scaled-up IT services provider with a client portfolio of more than 750 leading global enterprises from all key industry verticals, and nearly90,000 professionals spread in more than 30 countries across five continents.

As part of the merger, all shareholders of Mindtreewill be issued shares of LTI in the ratio of 73 shares ofLTI for every 100 shares of Mindtree.

The parent company, L&T, will hold 68.73 per cent of the merged entity. The record date to determine the eligible shareholders of Mindtree for the issue of equity shares ofLTI has been fixed as November 24.

“LTIMindtree is integral toL&T’s technology-led growth vision and is poised to play a crucial role in the expansion and diversification of our services portfolio.

“The highly complementary strengths of LTI and Mindtree make this integration a win-win proposition for all our stakeholders —clients, partners, investors, shareholders, employees, and communities,’’ A.M. Naik, group chairman of L&T and chairman of LTIMindtree, said.

Mindtree shares ended with gains of 2.81 per cent in Monday's trade at Rs 3,766.35, while the LTI counter also finished in the green as it rose by2.05 per cent or Rs 103.65 to Rs 5162.20.