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.
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.
