MindTree slips as L&T tightens grip

MindTree was down 1.74% to settle at Rs 936.15 on the BSE after Larsen and Toubro gained control of the IT company on Wednesday.

Meanwhile, the S&P BSE Sensex was up by 202.68 points, or 0.51% to 39,637.62.

On the BSE, 29,000 shares were traded in the counter so far compared with average daily volumes of 28,000 shares in the past two weeks. The stock had hit a high of Rs 963.25 and a low of Rs 930.30 so far during the day. It hit a 52-week high of Rs 1,181.90 on 11 September 2018 and a 52-week low of Rs 752.60 on 26 October 2019.

 

Larsen & Toubro (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 open offer started on 17 June 2019 and it closes on 28 June 2019.

As per the data on the BSE at 15:30 IST today, 26 June 2019, 4.83 crore shares had been tendered in the L&T's open offer, representing a subscription of 94.16%.

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.

On a consolidated basis, MindTree's net profit rose 3.76% to Rs 198.40 crore on a 2.92% rise in the net sales to Rs 1839.40 crore in Q4 March 2019 over Q3 December 2018.

MindTree is a global technology consulting and services company.

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