L&T may launch open offer for Mindtree shareholders on June 17: Sources

Engineering major L&T is likely to launch its open offer for Mindtree shareholders on the second week of June as sources in the know said the company had already received market regulator Sebi’s approval for the same. “The open offer is likely to be launched on June 17 and may stay open till June 28 of this year,” sources in the know said.  

The Mumbai-based conglomerate is already behind the schedule in launching its open offer as it exceeded the 55-day time line fixed under Securities and Exchange Board of India (Sebi) regulations in this regard. According to the public announcement made by the company earlier, the issue was scheduled to be opened on May 14 and completed on May 27. 

The offer was primarily delayed pending approval by Sebi, which had sought clarifications on this corporate action from L&T. After submission of the revised letter of offer with clarifications on May 10, the company has received the green signal from it, sources said. 

Despite approval to the open offer, sources said the target company, Mindtree, was yet to receive any formal communications from L&T. After a formal communiqué, Mindtree's panel of independent directors is likely to come up with its recommendations on the open offer.  

Meanwhile, Mindtree in an exchange filing on Friday said the company would hold its annual general meeting (AGM) of shareholders on July 16. While the Bengaluru-headquartered firm provided the book closure dates for the AGM, it didn’t give any record date for receiving the dividends.

The IT services firm, in its upcoming AGM, will deliberate on proposals relating to annual and special dividends. In April, Mindtree had announced final and special dividends of Rs 4 and Rs 20, respectively, for its shareholders.

After acquiring a 20 per cent stake from Coffee Day Founder VG Siddhartha, L&T has acquired an additional 8 per cent in Mindtree through open market purchase. Currently, L&T's holding in Mindtree stands at around 28.87 per cent. However, the unsolicited takeover attempt is being opposed by Mindtree's founders, who seek more clarity on L&T's plans.