Hi Komal,
I've never tried anything like this myself in LabVIEW, so I did little looking around.
Google points to a lot of white papers on the subject of image stitching. In a quick search I couldn't find any actual mathematical formulas available for download. But they're probably out there.
One photographer's blog pointed to this page:
http://www.kekus.com/download/index.html
One thing I've done in the past myself is to use IrfanView through the command line interface for image manipulations in LabVIEW. IrfanView isn't "free" for commercial use. But it's very well priced. It has the ability to create a Panoramic image. But I'm not sure if this function is available through the command interface, and I can't make any claim to how well this particular function would work for your application.
Good luck.