The board of mid-tier IT firm Mindtree and LTI approved a composite scheme of amalgamation of both the independently listed firms at respective meetings held on Friday. The firms will be housed under the Larsen & Toubro Group with a combined revenue of $3.5 billion.

Upon the scheme becoming effective, all shareholders of Mindtree will be issued shares of LTI at the ratio of 73 shares of LTI for every 100 shares of Mindtree. The new shares of LTI issued will be traded on the NSE and BSE. Larsen & Tourbo will hold 68.73% of LTI after the merger. The merger will be completed in the next 9-12 months subject to regulatory approvals.

The transaction is subject to shareholder and regulatory approvals. Mindtree, with market cap of Rs 55,627 crore will merge into LTI with market cap of Rs 80,518 crore, after markets closed on Friday.

While announcing the final merger, AM Naik, Group Chairman, L&T said that the group’s engineering services company Larsen and Toubro Technology Services will not be merged into the same entity as the group wants the knowledge focus of the company to be not diluted.

As a result of this merger, Debashis Chatterjee, currently CEO and MD of Mindtree, will head the combined entity, as reported by ET last week.Sanjay Jalona has decided to move on for personal reasons, said Naik.

For now, LTI and Mindtree will continue to function independently. A Steering Committee will be constituted to oversee the transition till the merger process is complete. The name of the combined entity will be “LTIMindtree” leveraging the advantages of both the brands and creating value for all the stakeholders. The company will announce details of the committee in due time, said Naik.