Happiest Minds-ITC Infotech listing set for Nov 2027

BengaluruThe merger of Happiest Minds Technologies with ITC Infotech is expected to be completed by September-October 2027, with the share swap and listing of new shares likely in November next year, Happiest Minds managing director Venkatraman Narayanan said. The company is awaiting regulatory clearances from Competition Commission of India (CCI), while the Saudi competition authority has acknowledged its application.ITC Infotech is acquiring Ashok Soota-promoted Happiest Minds, creating India’s 11th largest IT services player, with combined revenue of Rs 7,033 crore and a workforce of 19,000 across the US, Europe, the Middle East, APAC and India.The transaction will see ITC Infotech acquire a 22.1% minority stake in Happiest Minds from the promoter and promoter entities, Ashok Soota and Ashok Soota Medical Research, in two tranches for Rs 1,330 crore, at an average price of about Rs 395 per share.Following regulatory clearances, the first transaction will take place, with an ITC nominee joining the Happiest Minds board. The process will then move to National Company Law Tribunal (NCLT), which is expected to order shareholder and creditor meetings around March-April next year.The merger structure, under which Happiest Minds will merge into ITC Infotech, was driven by regulatory requirements, including Sebi’s minimum public shareholding norm of 25%. The company had explored the reverse structure, but it was not feasible under the prevailing regulatory framework.On whether Happiest Minds would retain its brand identity, Narayanan said the decision would be part of discussions with ITC. He pointed to previous acquisitions such as Yoga Bar and 24 Mantra, which have retained their brands.Addressing concerns over job losses, co-chairman and CEO Joseph Anantharaju said ITC management had assured employees there would be roles for everyone in the merged entity. “The commitment from the ITC management, starting from the chairman of ITC, is that he wants to see everybody becoming part of the merged entity,” he said.While some role adjustments, particularly at senior levels, could happen, Anantharaju said the larger employment challenge for the technology industry was adapting to AI. “The real fear that people should have with respect to job losses is the reorientation that’s required from each and every one of us from AI and its onslaught,” Narayanan said.On business performance, Narayanan said revenue growth remained a concern despite improved profitability. Revenue in constant currency grew 2.4% sequentially and 6.8% year on year in the September quarter.The company had initially guided 12.5% growth, but growth stood at around 6.8% at the half-year mark, owing largely to delays in closing one or two large deals. “We are now gunning for double-digit growth,” he said, clarifying that the company had not formally lowered its guidance.Happiest Minds has revised its revenue growth outlook to 12.5% in constant currency for FY27, up from the earlier projection of 10%, citing strong traction from its AI-led strategy and strategic initiatives.Anantharaju said clients were increasingly seeking measurable returns from AI adoption, prioritising technology modernisation and projects that deliver immediate revenue growth or cost savings.You use AI every day. Now get your AI Quotient. Take the AIQ test.