 "Larsen & Toubro, L&T")
The money managers of construction major L&T have changed their capital allocation policy by expecting the Mindtree ‘acquisition’ to generate better returns than the average 5 per cent being generated from the Rs 16,000 crore cash in its books.
It’s the effective cash management by L&T that prompted its top shareholders to give their consent for the “hostile” acquisition plan, say company insiders.
According to the current plan, L&T will end up investing Rs 10,700 crore in buying 66 per cent stake in Mindtree.
R Shankar Raman, CFO and member of L&T board, said one of the top questions raised during the company’s
