India's ITC arm to acquire 22.1% stake in IT firm Happiest Minds for $140 million (updated)

ITC

31/08/2026 15:30

Adds details and analyst quote from paragraph 5
By Urvi Dugar and Sai Ishwarbharath B
Aug 31 (Reuters) - India's ITC ITC.NS said on Monday its IT unit will buy a 22.1% stake in Happiest Minds Technologies HAPP.NS for about 13.3 billion rupees ($139.76 million) in cash, and that ITC Infotech would list on the BSE BSEL.NS and the NSE after the deal.
The combined entity will set a target of $1 billion in revenue in the fiscal year ending 2028, ITC said in an exchange filing. 
The ITC deal, part of a merger with the IT services provider, will take between three and eight months to complete.
Indian IT firms are racing to bulk up their capabilities through big-ticket buyouts to combat AI-led disruption. 

        Coforge COFO.NS acquired engineering company Encora in a $2.3 billion deal last year and Persistent Systems PERS.NS plans to acquire Germany-based Nagarro for $1.1 billion. 
"This should be viewed as an opportunity for backdoor listing for ITC Infotech and get to (the) $1 billion revenue figure faster. The midcaps will continue to outperform large caps due to (smaller) size, limited offerings plus geographical risks," said Gaurav Vasu, founder of market intelligence firm UnearthInsight.
Reuters reported earlier this month that competition between India's mid-sized IT firms and larger rivals has turned fierce as AI lowers barriers and levels the playing field.
Shareholders of Happiest Minds will receive 25 shares of ITC Infotech for every 81 shares held in the company. ITC will be the promoter of the merged company, with a 73.4% stake, Happiest Minds said in a separate release.

($1 = 95.1625 Indian rupees)

 (Reporting by Urvi Dugar and Sai Ishwarbharath B in Bengaluru; Editing by Diti Pujara and Pooja Desai)
 ((UrviManoj.Dugar@thomsonreuters.com; +91 9558725583;))