The move comes after its unit ITC Infotech announced that it will be acquiring 22.1% of the promoter shareholding in Happiest Minds Technologies in two tranches.
As per ITC’s presentation, the implied value of Happiest Minds stood at ₹6,167 crore, while that of ITC Infotech was ₹11,920 crore. ITC will be holding 73.4% stake in the combined entity that will list after Happiest Minds merges and dissolves into ITC Infotech.
Shareholders of Happiest Minds will receive 25 shares of ITC Infotech, for every 81 shares of Happiest Minds that they own as on the record date, which is yet to be determined.
The combined entity targets nearly 10% revenue synergies, margin expansion of 100 basis points and revenue of over $1 billion by financial year 2028.
How do the Numbers Stake Up For the Combined Entity?
Basis the current multiples of both entities, the combined entity can report revenue between ₹9,500 crore to ₹10,000 crore by financial year 2028 and a net profit of ₹1,080 crore to ₹1,120 crore. This could take the valuation of the combined entity to be between ₹26,000 crore to ₹28,000 crore.
How Does The Deal Benefit ITC?
ITC’s 73.4% stake in the combined entity will mean that the stock could trade at a holding company discount that could range between 25% to 30%.
A 73.4% stake would mean a value of anywhere between ₹18,000 crore to ₹20,000 crore, assuming that the combined entity is valued between ₹26,000 crore to ₹28,000 crore.Based on ITC’s current market capitalization of ₹3.2 lakh crore, the stake would be worth 5% to 6.5% of their value. Therefore, on a per share basis, the IT stake for ITC could imply a value between ₹12 to ₹15 per share.
However, it is important to note, that the existing value is already in the price as implied at 11920 Cr, as per the presentation earlier. Therefore, the incremental upside to this deal is between ₹6,000 crore to ₹8,000 crore.
Therefore, the deal could roughly add around ₹5 to ₹7 per share for ITC shareholders.
Shares of ITC are trading 3.3% higher on Monday at ₹263.95. The stock is still down 8% over the last one month and is down 28% so far in 2026.
