Happiest Minds Technologies Limited fell for five straight sessions to Rs354.5, erasing a 21% three-month gain, after announcing a two-step merger with ITC Infotech. ITC Infotech will first buy a 22.1% stake from promoter Ashok Soota, who holds 44% (32% directly and 12% via a medical research entity), for Rs1,330 crore, below the 25% open offer threshold, so minority shareholders get no cash exit. Shareholders will then receive 25 ITC Infotech shares for every 81 shares held. HDFC Securities downgraded the stock to 'Add' from 'Buy' and cut its target to Rs400 from Rs440, citing no takeover premium and a 15-month integration timeline.

Happiest Minds Technologies Limited said its planned merger into ITC Infotech will not lead to layoffs, with CEO Joseph Anantharaju and MD Venkatraman Narayanan stating ITC Infotech stipulated that all employees and leadership continue to preserve deep capabilities in digital, data, cybersecurity and AI. ITC Infotech will acquire 22.1% of Happiest Minds Technologies for around Rs 1,330 crore via 3,36,61,700 shares from Ashok Soota and Ashok Soota Medical Research LLP before the merger, after which ITC Infotech will hold 73.4% of the merged entity. Happiest Minds Technologies shares fell 10.92% to Rs 362.70 on the BSE on Tuesday following the announcement.