L&T picks up Mindtree shares via open-market transactions

L&T picks up Mindtree shares via open-market transactions
Photo Credit: Photo Credit: 123RF.com
7 May, 2019

After picking up 20% stake from Mindtree's largest independent shareholder and India coffee baron, VG Siddhartha, for more than Rs 3,200 crore, engineering conglomerate Larsen & Toubro (L&T) has bought shares worth Rs 113 crore of the mid-tier IT services company from the secondary market.

L&T had previously said that it would pick up 15% share from the secondary market after acquiring Siddhartha's shares via its broker Axis Capital.

According to exchange data, L&T has picked up 1,159,261 shares, or 0.75 per cent, at Rs 980 each.

The engineering conglomerate is engaged in a takeover battle for IT services firm Mindtree. L&T had announced in March its intention to buy 31% stake in Mindtree through an open offer, which will begin on 14 May and close on 27 May. L&T has plans to hike its overall stake in Mindtree to 66%, if things fall in place.

Mindtree had crossed $1 billion in annual revenue in the last financial year. It reported a 9% growth in net profit for the fourth quarter to Rs 198 crore. Net revenue for the quarter through March jumped 25.6% to Rs 1,839.4 crore.

Mindtree's founder-promoters, who own a little more than 13% stake in the firm, had opposed L&T's bid. 

Last month, the Competition Commission of India (CCI) had approved L&T's proposal to take over the Bengaluru-headquartered IT services firm.

"CCI approves (the) acquisition of up to 66.15% of the total equity shareholding of Mindtree Limited, on a fully diluted basis, by L&T," the country’s monopoly watchdog tweeted.