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Last Updated : May 17, 2019 09:50 AM IST | Source: Moneycontrol.com

Mindtree gains as L&T increases stake to 26.48%

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.

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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.

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First Published on May 17, 2019 09:49 am
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