The $20 billion conglomerate, which has taken its overall holding in Mindtree to about 26 percent, will launch the open offer to buy additional stake in around 10 days, he added.
After the latest transaction, L&T's shareholding in Mindtree stands at 26.48 per cent. The latest stock purchase was made at Rs 979.98 apiece.
The mode of the acquisition was open market purchases and L&T's holding after the said purchase stood at 25.94 per cent. The latest stock purchase was made at Rs 972 apiece.
The engineering behemoth is looking to pick up a controlling stake and a possible merger with its technology subsidiary L&T Infotech.
Vaibhavi Khanwalkar chats with Moneycontrol's Prince Thomas to understand if Mindtree's opinion matters in this takeover.
There are as many as 22 stocks on BSE where FIIs hold 40-70 percent stake. These include UPL, NIIT Technologies, HDFC Bank, Bharti Infratel, ICICI Bank and Mindtree
Mindtree is in the midst of a takeover battle, with Larsen & Toubro (L&T) seeking to take control of the mid-sized IT firm. However, Mindtree's promoters are opposed to the proposed deal.
Last week, L&T had purchased around 20 per cent stake of V G Siddhartha and Coffee Day in Mindtree through block deal for about Rs 3,210 crore.
Both TCS and Infosys hold 27 percent each in the index weight and they are likely to take leadership alternatively to help index inch up
For the company, one of the first movers in shifting towards digital, as it accounts for about 50 percent of the total revenue. Ravanan said the vision is to get to the next $1 billion much faster and going beyond digital.
Arihant Capital recommended hold rating on Mindtree with a target price of Rs 1080 in its research report dated April 18, 2019.
Anand Rathi is bullish on Mindtree has recommended buy rating on the stock with a target price of Rs 1100 in its research report dated April 18, 2019.
"Specific to our business, we are extremely confident of our growth," Ravanan said.
Mindtree shareholders are indeed in a sweet spot as long as the digital-driven strategy bears fruit for the company and attracts the attention of its rivals.
Amit Tandon, Managing Director, Institutional Investor Advisory Services, pointed out that there is nothing illegal about the dividend declared by the company and is in line with corporate governance. But in the light of special dividend of Rs 20, there here is a feasibility to revise the pricing by L&T.
The company has declared an interim dividend of Rs 3 per share that will be paid before May 10.
Total revenues grew 2.9 percent on a QoQ basis to Rs 1,839.40 crore for the quarter ended March
L&T signed a deal to buy 20.32 per cent stake of VG Siddhartha and his coffee enterprise on March 10 for over Rs 3200 crore at Rs 980 per share. The engineering and construction major made an open offer to buy 31 percent stake from Mindtree’s shareholders and an addition 15 percent through on-market purchase.
Net Sales are expected to increase by 2.1 percent Q-o-Q (up 24.7 percent Y-o-Y) to Rs. 1,825.2 crore, according to Prabhudas Lilladher.
Net Sales are expected to increase by 1.6 percent Q-o-Q (up 31.9 percent Y-o-Y) to Rs. 1,816.5 crore, according to Kotak.
We are focused on presenting our positives to our shareholders and tell them that we do have a bright future. We think that’s the most important message we are sending and we are getting very positive responses from them.
Asserting that 'independence' of Mindtree is important, Natarajan, one of the company's promoters who had opposed L&T offer, said there is nothing about individuals.
Nalanda Capital also stated that the acquisition might weigh down heavily on L&T’s reputation.