Mindtree board decides against share buyback, forms panel to study L&T’s offer

Mindtree board on Tuesday informed bourses that it has decided not to proceed with a buyback of equity shares of the company.

The midcap IT firm has also decided to constitute Committee of Independent Directors (IDC) to provide reasoned recommendation in respect of the unsolicited offer by Larsen & Toubro.

Committee of independent directors elected Apurva Purohit, Lead Independent Director, as the Chairperson of the IDC. The company made the announcement during the market hours.


Meanwhile, engineering and construction conglomerate Larsen & Toubro (L&T) on Tuesday made an open offer to acquire a 31 per cent stake in Mindtree for Rs 5,030 crore.

L&T said it has offered to buy 5.13 crore Mindtree shares at Rs 980 a piece.

Shares of Mindtree closed 1.10 per cent up at Rs 950.52, while the BSE Sensex gained 424.50 points, or 1.12 per cent, at 38233.41. L&T Infotech settled 0.57 per cent up at Rs 1,672.55.

Mindtree’s board, which last week deferred a decision on share buyback, met again today as it faces a Rs 10,800-crore hostile takeover bid from L&T.

Earlier, L&T had entered into a deal to buy Cafe Coffee Day owner V G Siddhartha’s 20.32 per cent stake in Mindtree and has also placed an order with brokers to pick up another 15 per cent of the company shares from the open market. Further, the group would make an open offer to buy additional 31 per cent stake in Mindtree.