L&T rises after taking control of MindTree

L&T rose 1.02% while MindTree fell 0.44% at 11:23 IST on BSE after L&T announced that its stake in the IT firm increased to 60.06%.

Meanwhile, the S&P BSE Sensex was up 40.28 points or 0.10% to 39,856.76.

L&T was up 1.02% at Rs 1579.40. MindTree was down 0.44% at Rs 909.25.

L&T announced that on 2 July 2019, it made payment of consideration to the shareholders of the MindTree who tendered their shares in the open offer. L&T made an open offer to the shareholders of MindTree to acquire up to 5.13 crore shares, or 31% equity, at Rs 980 per share. The offer opened on 17 June 2019 and closed on 28 June 2019.

 

L&T had initiated a hostile takeover of MindTree earlier this year and has since then expanded its shareholding to a majority stake through the recently-concluded open offer. L&T's shareholding in the IT firm now stands at 60.06% of the total paid-up equity share capital.

Prior to the open offer, L&T's total shareholding in MindTree stood at 28.90%. L&T invested strategically to take control over MindTree. First, it bought around 20% stake held by CafCoffee Day (CCD) founder V.G. Siddhartha and two of his firms in April.

Subsequently, L&T bought 8.58% stake from other shareholders, and this resulted total ownership to 28.90% before the company's open offer started on 17 June.

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