SEBI approves L&T's open offer for Mindtree: Reports

The Securities and Exchange Board of India (SEBI) has approved engineering major Larsen and Toubro's open offer to buy Mindtree shares, media reports said.

The open offer to acquire a 31% stake in Mindtree was scheduled to start early this month but was delayed as SEBI had asked for a few clarifications from L&T. With the approval, the open offer might begin in the middle of June, The Times of India reported. Business news channel CNBC-TV18 said the open offer would begin on June 16.

Mumbai-based L&T has been steadily buying Mindtree shares from the open market even as the open offer got delayed by almost a month, with its current stake standing at 28.88%. The open offer price has been set at Rs 980 per share and there is no change expected in the buying price.

Late last month, L&T had completed the purchase of almost 20% stake in the Bengaluru-based firm from its largest shareholder VG Siddhartha and two of his entities at Rs 980 apiece for more than Rs 3,200 crore.

L&T had announced in March its intention to buy a 31% stake in Mindtree through an open offer after buying out a few large shareholders. L&T is looking to pick up another 15% from the open market as part of its plan is to hike its overall stake in the firm to 66%.

The deal is one of the most high-profile hostile takeover bids in Indian corporate history.  Mindtree's founders, who own a little more than 13% stake in the firm, had opposed L&T's bid.

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

L&T has two entities that cater to technology customers -- L&T Technology Services and L&T Infotech. Last month, the Competition Commission of India had approved L&T's proposal to take over Mindtree.