Shares of Happiest Minds Technologies fell 6% on August 27 on report that ITC Infotech will buy its promoter's stake and the deal is possible at Rs 390-400 per share.

The companies' boards may approve the deal next week, adding that Happiest Minds could get delisted.

On August 27, Happiest Minds shares closed 6% lower at Rs 419.8 apiece.

ITC Infotech to directly purchase 22% stake out of 44% promoter holding, reported CNBC-Awaaz.

For the remaining 22% ITC Infotech could offer its shares and that would be followed by the mandatory open offer, the report said.

ITC Infotech could get listed separately.

Last month, Moneycontrol reported that ITC Infotech had emerged as the frontrunner to acquire a majority stake in the mid-tier IT services firm.

Exchange data showed that Happiest Minds founder and executive chairman Ashok Soota currently holds over 32% in the IT services firm directly and more than 40% through other promoter holdings.

Ashok Soota Medical Research LLP holds about 11.8% stake in the company.

If completed, the acquisition would mark ITC Infotech's biggest bet yet on expanding its digital engineering and AI-led technology services business. It would also significantly strengthen the company's presence in high-growth areas such as cloud, data, cybersecurity, and digital transformation while broadening its global client base.

In October 2024, ITC Infotech completed its acquisition of cloud services company Blazeclan Technologies for up to Rs 485 crore.

For Happiest Minds, the transaction would represent a change in control after more than a decade as an independent company. Founded by IT industry veteran Ashok Soota in 2011, the Bengaluru-headquartered company has built a niche in digital transformation services and counts enterprises across sectors among its customers.