ITC rallies 5%; Happiest Minds Technologies slips 5%; here's why

ITC Infotech will acquire an aggregate minority stake of 22.1% in Happiest Minds from the Promoter and Promoter entities for a total consideration of ₹1,330 crore (average price of ₹395/share).

ITC, Happiest Minds Technologies shares price movement

 

ITC share price rallied 5 per cent to ₹269 on the BSE in Tuesday’s intra-day trade after ITC Infotech announced the proposed strategic combination with Happiest Minds Technologies Limited (Happiest Minds) to create a scaled, future-ready, AI-first global technology services enterprise. 

 

ITC Infotech is a wholly-owned subsidiary of the company and a leading global technology services player.

 

Share price of Happiest Minds slipped 5 per cent to ₹388.50 on the BSE intra-day deals as  ITC Infotech said will acquire an aggregate minority stake of 22.1 per cent in the company for a total consideration of ₹1,330 crore (average price of ₹395/share),

 

 

At 09:30 AM on Tuesday, ITC quoted 3 per cent higher at ₹264.65, and Happiest Minds was down 4.7 per cent at ₹388 on the BSE. In comparison, the BSE Sensex was trading flat at 76,957.  

Happiest Minds announces merger with ITC Infotech

 

Happiest Minds, an AI First, customer-centric digital engineering company, on August 31, 2026 announced the signing of definitive agreements to combine its business with ITC Infotech, creating a scaled AI First global technology services enterprise with $1 billion of annual revenue by the financial year 2027-28 (FY28).

 

The combined company will unite Happiest Minds' strengths in AI, digital engineering, cloud, data, analytics and cyber security with ITC Infotech's deep expertise in enterprise transformation, SAP, Product Lifecycle Management (PLM), cloud, Industry 4.0 and industry-specific technology solutions, Happiest Minds said in a press release.

 

As part of the transaction, ITC Infotech will acquire an aggregate minority stake of 22.1 per cent in Happiest Minds from the Promoter and Promoter entities across two tranches for a total consideration of ₹1,330 crore (average price of ₹395/share). 

 

Further, the proposed merger will be effected through a share swap, pursuant to which equity shareholders of Happiest Minds will receive 25 shares of ITC Infotech for every 81 shares of Happiest Minds held by them. ITC Limited will be the promoter of the merged company, with an around 73.4 per cent stake.

 

The proposed merger is subject to the satisfaction of customary statutory, shareholder and regulatory approvals, including approvals from the Competition Commission of India, the relevant stock exchanges and the National Company Law Tribunal. The companies expect the transaction to be completed over the next 15 months and will continue to operate independently until all approvals have been obtained. The combined company will be listed on relevant stock exchanges post receipt of all approvals.

 

The merger of Happiest Minds and ITC Infotech brings together complementary strengths towards creating a future-ready technology services organization, said Joseph Anantharaju, co-chairman & CEO, Happiest Minds.