Mindtree's share buyback plan to make takeover expensive for L&T

Mindtree is already trading at two times its enterprise value to revenues and the buyback at an expected at a price of Rs 1,000-1,200 would take the share price even higher

Mindtree’s plan to buy back shares will make picking stake an expensive proposition for Larsen & Toubro (L&T). L&T is in talks with the single-largest shareholder in Mindtree, V G Siddhartha of Café Coffee Day group, to buy his 20.41 per cent stake in Mindtree. At the current price, the stake would cost L&T around Rs 3,300 crore.

Mindtree is already trading at two times its enterprise value (EV) to revenues and the buyback at an expected at a price of Rs 1,000-1,200 would take the share price even higher, according to analysts. 

G Chokkalingam, managing director of Equinomics Research and Advisory,