L&T's MindTree open offer likely by June 10

The open offer of engineering behemoth Larsen & Toubro (L&T) for purchasing the controlling stake in the Bengaluru-based mid-tier IT services company MindTree, is likely to commence from the second week of June 2019.

"The company is awaiting Sebi's approval for the offer. It will be done in around 15 days. So, the likely dates are between June 10 and June 14," a highly placed source told DH.

According to the open offer document issued by L&T, it was scheduled to be launched on May 14 and completed on May 27.

The offer, which is yet to get Sebi's nod, is stuck in the process of the regulator's verifications. "Sebi usually takes time to clear the queries," the source said.

However, the sources added that it's very unlikely that the engineering giant will revise its offer price, as MindTree's shares have been shooting up in anticipation of the open offer. "The company has to hold its nerves. I don't think we will revise the offer," it added.

At the time of filing this copy, the Mindtree scrips were trading at Rs 980 a piece -- equivalent to the offer by the L&T. The company is said to be already paying Rs 100 premium for buying a stake in the IT services firm.

Till now, L&T has acquired 28.87% stake in the Mindtree. Of this, the company had purchased around 20% stake of VG Siddhartha, who had pledged his stake with various banks, and Coffee Day in Mindtree through a block deal for about Rs 3,210 crore

In all, the infrastructure major is eyeing up to 66% stake in Mindtree for around Rs 10,800 crore -- marking the country’s first-ever hostile takeover bid in the IT industry.