ITC Infotech to buy 22.1% of Happiest Minds for ₹1,330 crore, then merge
What's the deal? ITC InfotechDealroom has a profile for this one. Try Dealroom →, a wholly owned subsidiary of ITC LimitedDealroom has a profile for this one. Try Dealroom →, will acquire a 22.1% promoter stake in Happiest Minds TechnologiesDealroom has a profile for this one. Try Dealroom → for about ₹1,330 crore, the companies said in a regulatory filing on August 31, 2026. It will buy 33,661,700 shares in two phases from promoter Ashok Soota and his associated entities.
What's the endgame? Beyond the stake purchase, ITC Infotech plans to amalgamate Happiest Minds into its operations. Under the terms, Happiest Minds shareholders would receive 25 ITC Infotech shares for every 81 they hold. ITC Infotech then intends to list on the stock exchanges.
The strategic rationale: The deal is part of ITC Infotech's "Orbit Next" strategy for global expansion through partnerships. It aims to combine ITC Infotech's AI-led capabilities with Happiest Minds' work in digital engineering, data, and cybersecurity across sectors including healthcare, edtech, and hi-tech.
Happiest Minds, listed on the BSE and NSE, specialises in digital transformation, spanning cloud computing, analytics, artificial intelligence, and cybersecurity. It reported ₹2,315.11 crore in revenue for fiscal 2025-26, extending three years of turnover growth. The combined entity is targeting $1 billion in revenue by fiscal 2028.
What could go wrong? The transaction still needs clearance from the Competition Commission of India, the stock exchanges, the National Company Law Tribunal, and shareholders. Completion is expected within three to eight months.
The signal: The move points to consolidation in India's IT services sector, as larger players buy scale and specialist capabilities to chase billion-dollar revenue targets and public-market visibility.
Read more: businessupturn.com
Image credit: Generated with Gemini
