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Last Updated : Jul 03, 2019 05:51 PM IST | Source: Moneycontrol.com

L&T officially becomes promoter of Mindtree with 60.6% stake

After acquiring 28.90 percent from Siddhartha and through open market transactions, L&T got a little over 31 percent from an open offer to acquire its promoter stake.

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Image: Facebook/mindtreeltd
Image: Facebook/mindtreeltd
 
 
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It is official. Engineering behemoth L&T, with a 60.06 percent stake, is now the promoter of Mindtree.

In a BSE filing, Mindtree said, “Larsen & Toubro Limited (L & T) has acquired 60.06 percent equity shares of the total shareholding of the company and has acquired control and is categorised as Promoter pursuant to SEBI Regulations, 2018.”

Mindtree’s shares were oversubscribed in L&T’s open offer that commenced on June 17 and ended on June 28 to buy 31 percent of Mindtree's shares.

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In March, L&T signed a definitive agreement to buy a 20.32 percent stake of Mindtree from VG Siddhartha and his coffee enterprise. In a detailed public statement, the company said that it intended to buy an additional 46 percent stake in the company through open market offer for 15 percent of shares and the remaining through an open offer.

After acquiring 28.90 percent from Siddhartha and through open market transactions, L&T got a little over 31 percent from the open offer.

Last month, Mindtree's board appointed five new directors, including SN Subrahmanyan, L&T CEO and Managing Director. The other new board members include Jayant Damodar Patil, who was appointed as a non-executive director.

Patil is a full-time director in L&T and Senior Executive Vice President for L&T's Defence Business. Ramamurthi Shankar Raman, who has been appointed as a non-executive director, is the a full-time director and Chief Financial Officer in L&T.

Co-founder Subroto Bagchi, who retires on July 16, 2019, has not offered to be re-appointed.

Except for Bagchi, there is no clarity on whether other founders Rostow Ravanan, CEO, Krishnakumar Natarajan, Chairman and NS Parthasarathy, will continue to be on the board of directors.

There have been speculations that Ravanan might step down as CEO and Natarajan might be retained as non-executive chairman. Emails sent to Mindtree went unanswered.

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First Published on Jul 3, 2019 05:51 pm
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