Happiest Minds shares drop 12% after merger with ITC Infotech announced

Shares of Happiest Minds Technologies fell sharply on Tuesday, September 1, 2026, after the company announced a strategic merger with ITC Infotech, a wholly owned subsidiary of ITC Limited. The stock dropped nearly 12% in early trading, hitting an intraday low of 360.90 on the BSE, down from its previous close of 407.15. The decline came a day after the companies revealed the details of their planned combination, which aims to create a scaled, AI-first global technology services enterprise.

The merger, announced on August 31, 2026, involves a two-stage transaction. First, ITC Infotech will acquire a 22.1% stake in Happiest Minds from its promoters, founder and executive chairman Ashok Soota and Ashok Soota Medical Research LLP, for approximately Rs 1,329.72 crore. This acquisition will be funded through a rights issue by ITC Infotech. Following this, Happiest Minds will amalgamate with ITC Infotech. Under the proposed share-swap arrangement, Happiest Minds shareholders will receive 25 fully paid-up equity shares of ITC Infotech for every 81 shares they hold.

The combined entity is projected to have a workforce of over 19,000 professionals and targets annual revenue of US$1...