Target: ₹415CMP: ₹353.95Happiest Minds’ promoter Ashok Soota is divesting 22.1 per cent of his 44.2 per cent holding in the company across two tranches. Under the approved merger scheme, Happiest Minds’ shareholders will receive 25 shares of ITC Infotech for every 81 shares of Happiest Minds they hold. Happiest Minds brings strong digital capabilities in generative AI, data, cloud, digital product engineering, and cybersecurity, while ITC Infotech offers deep expertise in SAP, product lifecycle management (PLM), Industry 4.0 and enterprise transformation.The combined entity will achieve substantial scale, employing more than 19,000 professionals operating across more than 30 countries, providing deeper talent and geographic reach. This strategic combination significantly accelerates Happiest Minds’ long-term vision of becoming a $1-billion revenue company, narrowing its original target year forward from FY31 to FY28. The completion of the merger process is expected to take about 15 months, subject to regulatory approvals. Happiest Minds will be delisted and amalgamated into ITC Infotech. The resulting combined entity is expected to get listed on the BSE and NSE by Q2 or Q3FY28. ITC will hold a dominant 73.4 per cent stake in the listed company, while public shareholders will hold the remaining 26.6 per cent, with Soota retaining a 7.55 per cent non-promoter holding. We maintain our BUY rating, and value the company on June 2027E EPS by valuing a one-year forward P/E target of 22x to arrive at a TP of ₹415/share.Published on September 3, 2026