L&T Stake In Mindtree Rises To 60%, Open Offer Oversubscribed
L&T has received bids for 5.54 crore Mindtree shares—108.09 percent higher than the total shares offered.
Larsen & Toubro Ltd.'s stake in Mindtree Ltd. rose to more than 60 percent after its open offer to buy 31 percent shares in the Bengaluru-based IT firm was over-subscribed, data available on the bourses showed Thursday.
The Mindtree open offer will end on Friday, marking the completion of L&T’s three-step hostile takeover of the IT firm.
In March, L&T bought 20.32 percent stake in Mindtree from VG Siddhartha and his Coffee Day Enterprises Ltd. for over Rs 3,000 crore. It then bought shares in the open market to raise its stake in the company to nearly 30 percent.
On Thursday, L&T received bids for 5.54 crore Mindtree shares—108.09 percent higher than the total offer, according to information available on the BSE.
Shares in the open offer were tendered at Rs 980 apiece.
Initially, Mindtree founders resisted the hostile takeover bid and tried rallying support from its large investors, including Singapore-based Nalanda Capital and others.
However, with the likes of Nalanda Capital and Arohi Asset Management having sold their shares to L&T in the Mindtree open offer, there are speculations that the founders may also tender their shares. The founders—Subroto Bagchi, NS Parthasarathy and Krishnakumar Natarajan—together hold about 13 percent stake.
L&T has already secured three board positions at Mindtree that has eight members on the board, including four independent directors who had said the open offer is fairly priced. The IT firm, however, remains silent on how it plans to accommodate the L&T representatives.
On Thursday, Mindtree shares rose 0.97 percent to Rs 945.20 apiece on the BSE while those of L&T fell 0.01 percent to Rs 1,550.70. The benchmark Sensex declined 0.01 percent to end the day at 39,586.41 points.