Shares of LTIMindtree, the merged entity of Larsen and Toubro Infotech (LTI) and Mindtree, fell 2% to Rs 4,588.95 on the BSE in a strong market on Thursday.

Shares of Larsen & Toubro (L&T) Group fell for the fourth day in a row, falling 9% since it was listed on December 5 under a new name.

The combined Re 1 share issued by LTI and Mindtree, approximately 120 million shares each, will be listed and listed on the exchange on Monday, December 5, 2022.

The merger between LTI and Mindtree will be completed on November 14, 2022. The original shareholders of Mindtree, which will be delisted on November 23, 2022, will receive 73 shares of LTI (now LTIMindtree) for every 100 shares of Mindtree they hold. Parent company L&T has a 68.73% stake in LTIMindtree.

The integration of the two entities has been successfully completed with some changes in responsibilities and no loss of senior management.

LTIMindtree has become the fifth-largest IT services company by consolidated market capitalization. The larger size would help it go directly to the board rather than bid through an RFP. Motilal Oswal Financial Services (MOFSL) said this should improve its ability to conduct more significant transactions (over $100 million) compared to the current one-off case.

It also expects the combined entity to benefit from solid revenue synergies in the form of strong cross-sell and up-sell opportunities, diversification capabilities and access to more significant deals. It said that profit margins would likely improve as LTIMindtree expands, giving it a ‘neutral’ rating and a target price of Rs 4,950 per share.