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infrastructure | IST

L&T's stake in Mindtree crosses 25% mark; IDC recommendations on open offer may be delayed

Infrastructure major Larsen & Toubro's stake in IT company Mindtree has crossed the important 25 percent mark, touching 25.9 percent on Thursday, as per the latest regulatory filings.
CNBC-TV18 had reported earlier on Thursday that Mindtree saw 26 lakh shares or 1.5 percent stake change hands via a block deal.
L&T's stake crossing 25 percent can officially trigger an open offer. The infrastructure major will get a board seat in Mindtree after its stake touches 26 percent. However, SEBI's approval on the L&T-proposed open offer is still awaited.
Mindtree had set up an Independent Directors' Committee (IDC) panel to evaluate the offer price and give its recommendation to the shareholders.
As per L&T's takeover timeline, the IDC had to give its recommendation by May 10, but it is itself awaiting SEBI's nod for the open offer before finalising recommendations, said sources.
Apurva Purohit, head of IDC, told CNBC-TV18 that the IDC will be following the required process as per law and the recommendations will be given within the timelines prescribed under the takeover regulations.
L&T had proposed that the open offer would begin on May 14 and close on May 27, with the option to raise the open offer price or the offer size till 13 May. It had announced an open offer to get a stake of 31 percent in Mindtree at Rs 980 per share.
The infra company completed the acquisition of 19.96 percent stake of VG Siddhartha and Coffee Day in Mindtree on April 30. Post that, L&T has been consistently increasing its stake by picking up shares via open market purchases.