Snapping two-day gaining streak, shares of Mindtree tumbled 4 per cent on Wednesday following the board's decision to not proceed with the proposed buyback of equity shares. The share of Mindtree Ltd. tumbled down to a low of Rs 911, a 39.55 points or 4 per cent slide against the previous close on Bombay Stock Exchange. The stock fell  2 per cent to the day's low at Rs.931.00 on NSE.

The stock opened 1.12 per cent down on BSE and NSE against the previous close of Rs 950.5 and underperformed the sector by 0.47 percent. There has been a decreasing investor's participation for the stock at a mere volume of 0.62 lakh and 14 lakh on BSE and NSE.

Mindtree board on Tuesday decided not to pursue the buyback offer , which the company had announced last week before Larsen and Toubro (L&T) struck a deal to become the largest shareholder in the company by buying 20.32 per cent of shares held by VG Siddhartha and his companies. The company also announced the setting up of a committee of independent directors to evaluate the offer.

"After detailed deliberation and discussion, the board in its meeting today, decided to immediately constitute the committee of independent directors (IDC) in the interest of all stakeholders to provide their reasoned recommendation in respect of the unsolicited offer by L&T for the consideration of the shareholders," the company said in a regulatory filing.

Meanwhile, L&T on Tuesday also made an open offer to acquire a 31 per cent stake in IT services firm Mindtree for Rs 5,030 crore ($730.20 million). L&T offered to buy 5.13 crore fully paid-up equity shares of Rs 10 each from Mindtree at Rs 980 apiece.

In a separate exchange filing, L&T said the purpose of acquiring control of Mindtree is mainly to grow the revenue and profit of its asset-light services business portfolio, thereby increasing its consolidated return on equity.

After acquiring 20.3 percent from Mindtree's key shareholder VG Siddhartha--Cafe Coffee Day founder for about Rs 3,300 crore, L&T had said it would raise its stake in Mindtree to 66.32 per cent by spending as much as Rs 7,464 crore through a combination of open offer and stock market purchase. MindTree's founders, who own 13 percent in the company, have constantly objected the "hostile" takeover bid of the company by L&T.

Despite trading above the 30, 50, 150 and 200-day moving average, Mindtree shares have delivered poor returns of 4 per cent, 2 per cent, 0.25 percent over the period of one month, two weeks and one week period in the trading platforms

(Edited by Rupa Burman Roy)