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L&T nears 26% threshold in Mindtree after open-market transaction

L&T on Wednesday bought over 3.75 million shares, which is 2.29 per cent of Mindtree's total share base, at an average price of Rs 979.96 per share

Debasis Mohapatra  |  Bengaluru 

Company should follow A M Naik’s footsteps to thwart L&T’s takeover bid 	Photo: Saggere Radhakrishna

is fast inching towards touching the 26 per cent threshold in Mindtree, as the engineering firm on Wednesday bought an additional 2.29 per cent stake worth Rs 368.4 crore through open market transaction. With this round of buying, total holding of reached 23.92 per cent in the Bengaluru-headquartered company.

This is the third consecutive day of buying by from the open market as the company added 0.89 per cent stake of on Tuesday for around Rs 144 crore. On Monday, the firm bought 0.75 per cent stake in the mid-tier IT firm for around Rs 113 crore.

According to the bulk deal data available with the NSE, L&T on Wednesday bought over 3.75 million shares, which is 2.29 per cent of Mindtree’s total share base, at an average price of Rs 979.96 per share.

The data showed Rekha N Shah, wife of ace investor and Enam co-founder Nemish Shah, was one of the principal sellers, who sold over 2.68 million at an average price of Rs 980. Reaching the threshold level of 26 per cent is critical for L&T as it is likely to ensure the firm a board seat in because of its voting share apart from triggering the open offer.

Meanwhile, there are reports suggesting that L&T might not revise its open offer price of Rs 980 for shareholders.

According to the Securities and Exchange Board of India (Sebi) norms, the company can revise its open offer price one working day prior to tendering of begin. The share price of Mindtree was marginally up to close at Rs 980.10 on Wednesday in the BSE.

Amid a takeover bid, L&T had concluded the purchase of 20 per cent stake of Coffee Day founder in the Bengaluru-headquartered firm for about Rs 3,210 crore last week. The company is currently in the process of buying an additional 15 per cent stake from the open market and this week’s bulk deals are part of this process.

L&T is pursuing a controlling stake of 66 per cent in the mid-tier IT firm for around Rs 10,700 crore. However, the unsolicited takeover attempt is being opposed by Mindtree’s founders, who are seeking more clarity on L&T’s plan.

Mindtree’s panel of independent directors is in the process of evaluating L&T’s open offer proposal and will give its recommendations by May 10. The open offer will begin on May 14 and close on May 27.

First Published: Thu, May 09 2019. 01:36 IST
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