In a hostile takeover bid, L&T acquired over 33 lakh shares of Mindtree on May 9. However, SEBI yet to give its nod to the L&T’s open offer that is set to commence on May 14.
With L&T acquiring more than 33 lakh shares of Mindtree through the open market on Thursday at a price of Rs 980 a piece, the engineering major has now taken its total shareholding in the IT firm to 25.93 per cent. Thursday’s transaction amounted to Rs 323.96 crore.
After having acquired around 20 per cent stake in Mindtree from Cafe Coffee Day founder VG Siddhartha in March, L&T has mandated Axis Capital to buy as much as 15 per cent shares of Mindtree from the open market.
Over the last few days, the engineering major has been busy acquiring shares of Mindtree from the open market. On May 8, L&T had purchased over 37 lakh shares of Mindtree from the open market at a price of Rs 976.96, thereby upping its stake in the IT firm to 23.92 per cent. In the coming days, L&T will acquire another 9 per cent of Mindtree shares from the open market. The firm is also set to commence an open offer on May 14 in which it will be looking to acquire 31 percent of the firm at Rs 980 per share.
The market regulator Securities and Exchanges Board of India (SEBI) is yet to give its nod to the L&T open offer that is set to commence of May 14. Without SEBI’s approval in place on or before May 13, the open offer cannot start.
This is despite the fact that the engineering major on May 9 picked up a 25.93 percent stake in Mindtree, which automatically triggers the open offer. Meanwhile, the independent directors committee (IDC) set up by Mindtree that was supposed to give its recommendations to shareholders on the L&T open offer on May 10, did not do so. According to reports, the IDC is waiting for SEBI’s approval before giving any recommendations.
Mindtree Limited is an Indian multinational information technology and outsourcing company headquartered in Bengaluru, India and New Jersey, USA. Founded in 1999, the company employs approximately 20,204 employees with annual revenue of USD 1 Billion. Mindtree’s expertise in digital (including Cloud, Data Analytics & Salesforce) has also helped it successfully partner with education clients. Drawing on their global experience, the Mindtree Education team has created solutions and platforms that accelerate the digital journey of its e-learning clients.