Shares of IT major L&T Infotech, a subsidiary of Larson & Toubro, slumped as much as 3.6 per cent on Monday after the talks of a possible merger between the company and Mindtree, another L&T subsidiary.
On Monday, Bloomberg reported the possible merger of both L&T subsidiaries into a $22 billion firm. At 3:23 pm, stocks of L&T Infotech were down by 2.3 per cent at Rs 5,884. L&T holds a 74 per cent stake in L&T Infotech.
Mindtree, which has a market valuation of $8.3 billion, was acquired by L&T in 2019 for a 61 per cent stake. At 3:23 pm, stocks of Mindtree Limited were down as much as 3.05 per cent at Rs 3,972.
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Both the companies are yet to announce results for January to March.
For the December quarter, Mindtree had reported a 34 per cent rise in consolidated net profit at Rs 437.5 crore, whereas L&T Infotech reported a profit increase of 18 per cent at Rs 612 crore.
Notably, the stocks of the IT Sector were down by 4.58 per cent.
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