L&T acquires additional 2% stake in Mindtree via open market purchase; takes total holding to 25.9%

Amid opposition from Mindtree’s promoters against Larsen and Toubro’s (L&T) takeover bid, the infrastructure major acquired another 2 percent stake in the IT firm by purchasing shares from the open market, taking its overall holding in the mid-sized IT company to 25.93 percent, according to media reports. “This is to inform you that, Larsen and Toubro Ltd has acquired 33,05,775 equity shares (with face value of Rs 10 each) of Mindtree Ltd, since its last disclosure…made on 8 May, 2019,” L&T said in a regulatory filing. The mode of the acquisition was open market purchases and L&T’s holding after the said purchase stood at 25.93 percent, compared to 23.92 percent prior to the transaction, another filing said, reported PTI. [caption id=“attachment_4472887” align=“alignleft” width=“380”] Representational image. Reuters[/caption] The shares were purchased at Rs 980 apiece. Early this month, L&T had purchased around 20 percent stake of V G Siddhartha and Coffee Day in Mindtree. L&T will purchase this stake at a price of Rs 980 per share aggregating to about Rs 3,269 crore. The infrastructure major is in fray to buy up to 66 percent stake in Mindtree for around Rs 10,800 crore — marking the country’s first-ever hostile takeover bid in the IT industry. L&T has been buying Mindtree shares from the open market for three consecutive days. On May 6, L&T had  bought shares of Mindtree worth about Rs 113 crore through open market transactions, reported PTI. According to the bulk deal data available with the NSE, L&T bought over 11.52 lakh shares, or 0.75 percent, worth Rs 112.91 crore with the average price being Rs 979.94 per scrip. On May 7, L&T purchased 8.43 lakh shares of Mindtree at Rs 979.9 per scrip, translating into a deal size of Rs 82.6 crore. The infra major also placed an order with brokers to pick up another 15 percent of the company’s shares from the open market for about Rs 2,500 crore. Subsequent to these deals, L&T would make an open offer to buy additional 31 percent stake. On May 8, Mindtree had informed stock exchanges that around 1.10 crore pledged shares of the company were released on 30 March, following instructions from various debenture holders, reported PTI. “(A total of) 1,10,19,467 equity shares (6.71 percent stake) were pledged in favour of IDBI Trusteeship Services Ltd… have been released pursuant to the instruction of various debenture holders of various NCDs issued,” Mindtree said in a filing to the exchanges. Opposing takeover bid by L&T, the four founders of Mindtree namely Subroto Bagchi, Krishnakumar Natarajan, Rostow Ravanan, and Parthasarathy NS had in March this year alleged that they were offered huge amounts of money apparently to give away the IT firm. They refused to divulge as who approached them with the money and exhorted employees to focus on their work to achieve $1 billion-milestone. — With PTI inputs