Shares of the Bengaluru-based information technology company - Mindtree Ltd. rose as much as 2.38 per cent on the BSE to Rs 968.55 and its price on the National Stock Exchange Mindtree share price advanced to Rs 970 after it informed exchanges that its board will meet on March 20 to discuss share buyback proposal.
Meanwhile, the country's largest infrastructure developer Larsen & Toubro is set to launch a bid to takeover Mindtree by today evening; The Times of India reported citing people directly aware of the matter.
L&T will buy out VG Siddhartha's share and proceed with an open offer to public shareholders for Rs 7,000 crore, the report said.
This will be the first-ever hostile takeover move in IT industry with its founders Krishnakumar Natarajan, Subroto Bagchi, NS Parthasarathy and current CEO Rostow Ravanan, together holding 13.3 per cent in the company, resisting the L&T bid, the report added.
Trading volume in Mindtree shares slightly surpassed its two-week average on the BSE as 80,000 shares changed hands compared with an average of 74,000 shares traded daily in the past two weeks.
Last month, Coffee Day Enterprises has said it would take required action in the next few days to get a part of shares of IT firm Mindtree, owned by Coffee Day and its promoter VG Siddhartha, released by the Income Tax Department.
In a release on Sunday the company drew attention to a stock exchange filing made the previous day, which said that 74.90 lakh shares of Mindtree have been affected by the provisional attachment by the Income Tax Department over a potential tax demand, where 22.20 lakh shares are held by Coffee Day Enterprises in Mindtree and 52.70 lakh shares by its promoter Mr Siddhartha.
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