Shares of LTIMindtree climbed 1.75 percent in morning trade on July 13 after being included in the Nifty50 benchmark in place of HDFC, which has merged with HDFC Bank.
At 11.36 am, LTIMindtree was trading 1.75 percent up at Rs 4,900.50 on NSE.
The decision was announced by the National Stock Exchange (NSE) earlier this month.
In an exchange filing on July 13, LTIMindtree -- a subsidiary of engineering giant Larsen & Toubro – said the company has entered the Nifty50 index.
“LTIMindtree plays a crucial role in the technology-led growth ambition of L&T Group, and we are thrilled to celebrate our inclusion in the NIFTY 50 index. The merger of LTI and Mindtree was driven by our vision to create a stronger, large-scale player with diversified portfolio of services and skills,” said S N Subrahmanyan, Chief Executive Officer and Managing Director, Larsen & Toubro Limited (L&T) and Vice-Chairman, LTIMindtree.
LTIMindtree is a result of a big merger between L&T Infotech and Mindtree which took place in December last year. LTIMindtree began trading on the domestic stock exchanges with its new name on December 5, 2022. Following the merger, the combined company now ranks as the fifth-largest IT services provider in the country based on market capitalisation and the sixth-largest based on revenue.
“We are proud of LTIMindtree’s inclusion in the NIFTY 50 index and grateful to our people, partners, investors, and shareholders for their trust in us,” said Debashis Chatterjee, Chief Executive Officer and Managing Director at LTIMindtree.
Indices rejigged
As per NSE’s announcement on July 5, in the Nifty 100 and Nifty 500 indices, HDFC is being replaced by Jindal Steel and Mankind Pharma, respectively.
Among other indices, HDFC will be replaced by LIC Housing Finance in Nifty Financial Services, by Poonawalla Fincorp in Nifty Financial Services Ex-Bank, by Phoenix Mills in Nifty Housing, by Brigade Enterprises in Nifty Core Housing and by Ambuja Cements in Nifty High Beta 50.
Meanwhile, JSW Steel has replaced HDFC in the S&P BSE Sensex index from July 13.
On S&P BSE 500, HDFC has been replaced by JBM Auto Components Ltd and on S&P BSE 100 by Zomato.
The merger of the country's largest private sector bank, HDFC Bank, and mortgage lender Housing Development Finance Corporation (HDFC), was effective from July 1. The boards had set July 13 as the record date to determine the eligible shareholders for allotment of shares under the merger deal.
The twin entities had first announced their decision to get hitched on April 4, 2022, after getting approvals from the board, shareholders, and regulatory authorities.
The loan book of the merged entity is expected to increase by 38.77 percent to Rs 22.21 lakh crore as against Rs 16 lakh crore as on March 31, as per the investor presentation of HDFC Bank.
Post this merger, the home loan account with HDFC will be transferred to HDFC Bank. But the contractual terms of your loan agreement will remain unchanged. Your home loan account number will remain the same and continue to be the point of reference for all your future communication with the bank.
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