L&T pins hope on SEBI approval to buy 31% stake in Mindtree via open offer
L&T has made a public announcement for the acquisition of 31 per cent shares of Mindtree from the market, with Axis Capital and Citi Global managing the open offer
- May 12, 2019,
- Updated May 12, 2019 9:22 PM IST
Engineering and construction behemoth Larsen & Toubro's open offer to buy 31 per cent stake in Bengaluru-based IT company Mindtree hang in the balance as market regulator SEBI is yet to give approval for the same.
Capital market watchdog Securities and Exchanges Board of India (SEBI) is expected to give a decision on the L&T open offer this week, which was set to start on May 14. According to corporate governance experts, L&T cannot go ahead with an open offer plan without SEBI's nod on or before May 13, in view of the restrictions placed by the market regulator.
L&T has touched the trigger point to start an open offer on May 10 after it increased its stake in mid-sized software firm Mindtree to 25.93 per cent. However, the company missed a deadline to issue its letter of offer to Mindtree shareholders, which is likely to delay the open offer plan.
L&T plans to raise its stake in Mindtree to 66.32 per cent by spending as much as Rs 10,800 crore, through an open offer for 31 per cent and an open market acquisition of 15 per cent.
Engineering and construction behemoth Larsen & Toubro's open offer to buy 31 per cent stake in Bengaluru-based IT company Mindtree hang in the balance as market regulator SEBI is yet to give approval for the same.
Capital market watchdog Securities and Exchanges Board of India (SEBI) is expected to give a decision on the L&T open offer this week, which was set to start on May 14. According to corporate governance experts, L&T cannot go ahead with an open offer plan without SEBI's nod on or before May 13, in view of the restrictions placed by the market regulator.
L&T has touched the trigger point to start an open offer on May 10 after it increased its stake in mid-sized software firm Mindtree to 25.93 per cent. However, the company missed a deadline to issue its letter of offer to Mindtree shareholders, which is likely to delay the open offer plan.
L&T plans to raise its stake in Mindtree to 66.32 per cent by spending as much as Rs 10,800 crore, through an open offer for 31 per cent and an open market acquisition of 15 per cent.