The L&T purchased 8,86,438 shares via open market on May 16 at Rs 979.81 per share, crossing the necessary 25 percent level to trigger the open offer on May 9.
Share price of Mindtree gained in the early trade on Friday after infrastructure and engineering major Larsen and Toubro (L&T) has increased its stake in the company to more than 26 percent.
The stake of L&T in Mindtree has risen to 26.48 percent after an open market purchase on May 16.
The L&T purchased 8,86,438 shares via open market on May 16 at Rs 979.81 per share, crossing the necessary 25 percent level to trigger the open offer on May 9.
Also Read - L&T now owns over 26% stake in Mindtree
However, pending approval of the Securities and Exchange Board of India (SEBI), L&T had to postpone the open offer scheduled on May 14. According to sources, the nod from SEBI is expected within a fortnight.
Once the approval is in place, L&T’s open offer for Mindtree shares can start.
L&T on May 9 upped its stake to 25.93 percent in Mindtree. A stake of over 25 percent stake in Mindtree means that L&T can call for board meetings and seek a seat on the Mindtree board. Sources said L&T had raised concerns about Mindtree’s governance and board practices and these matters would be the focus for L&T management.
At 09:38 hrs Mindtree was quoting at Rs 986.85, up Rs 6.60, or 0.67 percent and Larsen & Toubro was quoting at Rs 1,337.50, up Rs 0.60, or 0.04 percent on the BSE.For more market news, click here
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