The battle for Mindtree is heating up as L&T is considering a hostile takeover of Mindtree. While the IT company plans to go ahead with share buyback in an attempt to stop the acquisition on Wednesday.
Shriram Subramanian, Founder & MD at InGovern along with Amit Tandon, MD of Institutional Investor Advisory Services (IIAS) discuss all details briefly.
Amit Tandon believes that there is very little that promoters can do to prevent L&T from taking control over Mindtree. He further adds, "The big question here is - why are Mindtree promoters against L&T taking over?”
Meanwhile, Shriram Subramanian said, “There is a very high likelihood of L&T getting its hands on 51 percent of Mindtree provided they make an offer price which is richer than the current prevailing price. And the fact is they been already engaged with institutional investors as they would sell to get a clean exit in this transaction. ”
“The shareholding pattern of Mindtree is fairly dispersed and many of the institutional investors who are PE investors have held shares for a longer period of time and have been with the founders for a long time.” he further added.
At 1:27 PM, Mindtree traded 1.73 percent higher at Rs 963.75 per share on the NSE.