LTIMindtree shares rose over 1.75 per cent during intraday trade on Thursday after being included in the Nifty50 benchmark replacing HDFC. During the day, shares of the L&T subsidiary rose to a high of 4,943.90 and touched a low of 4,795.55. At 3.30 pm, the LTIMindtree was trading 1.76 per cent higher at Rs 4,901.00 on NSE. The decision to replace mortgage lender Housing Development Finance Corporation (HDFC) with LTIMindtree was announced on July 5.
A subsidiary of engineering giant Larsen & Toubro, LTIMindtree on July 13 informed about the company entering the Nifty50 index.
“LTIMindtree plays a crucial role in the technology-led growth ambition of L&T Group, and we are thrilled to celebrate our inclusion in the NIFTY 50 index. The merger of LTI and Mindtree was driven by our vision to create a stronger, large-scale player with diversified portfolio of services and skills,” said S N Subrahmanyan, Chief Executive Officer and Managing Director, Larsen & Toubro Limited (L&T) and Vice-Chairman, LTIMindtree.
LTIMindtree was created post-merger between L&T Infotech and Mindtree in December of last year. On December 5, 2022, LTIMindtree began trading under its new name on stock exchanges. Following the merger, the combined business is now the country’s fifth-largest IT services provider in terms of market capitalisation and sixth-largest in terms of revenue.
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Additionally, NSE had also announced, that in the Nifty 100 and Nifty 500 indices, HDFC is being replaced by Jindal Steel and Mankind Pharma, respectively.
Among other indices, LIC Housing Finance would replace HDFC in Nifty Financial Services, Poonawalla Fincorp in Nifty Financial Services Ex-Bank, Phoenix Mills in Nifty Housing, Brigade Enterprises in Nifty Core Housing, and Ambuja Cements in Nifty High Beta 50.
Meanwhile, on July 13, JSW Steel replaced HDFC in the S&P BSE Sensex index. On the S&P BSE 500, JBM Auto Components Ltd replaced HDFC, while HDFC has been replaced on the S&P BSE 100 by Zomato.
The merger of HDFC Bank and mortgage lender Housing Development Finance Corporation (HDFC) took effect on July 1. The boards had chosen July 13 as the record date for determining who was qualified for share allotment under the merger agreement. After receiving approval from the board, shareholders, and regulatory authorities, the twin corporations had declared their intention to merge on April 4, 2022.