Business / L&T Buys 20.3% Stake In Mindtree For Rs. 10,730 Crore

Mindtree Ltd fell in early trade after conglomerate Larsen & Toubro Ltd (L&T) said it would buy a 20.32 per cent stake in Mindtree for Rs. 10,730 crore, including open offer. L&T will buy stake from Cafe Coffee Day founder V.G. Siddhartha & companies related to him, Coffee Day Enterprises and Coffee Day Trading. L&T also placed an order with its broker for an on-market purchase of up to 15per cent of Mindtree's share

The Bengaluru-based IT services company Mindtree Ltd fell in early trade on Tuesday after conglomerate Larsen & Toubro Ltd (L&T) said it would buy a 20.32 per cent stake in Mindtree for Rs. 10,730 crore, including open offer.

L&T will buy the stake from Cafe Coffee Day founder V.G. Siddhartha and companies related to him, Coffee Day Enterprises and Coffee Day Trading, L&T said late on Monday.

Mumbai-based L&T also placed an order with its broker for an on-market purchase of up to 15 per cent of Mindtree's shares at Rs. 980 per share. It is also looking to buy an additional 31 per cent from Mindtree's public shareholders at the same price.

The Mindtree acquisition transaction will be fully funded by the Larsen & Toubro and the company will remain independent listed entity post acquisition.

L&T stock was trading 1.6 per cent lower on the BSE at Rs. 1,357 as of 10:36 am.