Engineering behemoth Larsen and Turbo's (L&T) stake in Mindtree rose to 26.48 percent from the earlier 25.94 percent after additional buy via open market on 16 May. It purchased 886,438 shares in the open market at Rs 979.81 apiece, L&T said in a stock exchange filing.
The company has now crossed the 26 percent level required to seek board representation in Mindtree.
L&T is looking to take over Mindtree, the first hostile takeover in the Indian IT sector. After purchasing 20.32 percent stake in Mindtree jointly held by Cafe Coffee Day's founder V.G. Siddhartha and two of CCD's associate firms, L&T intended to buy an additional 15 percent from the open market and another 31 percent from an open offer, according to its draft plan submitted to SEBI and the exchanges on 2 April.
The company had to postpone its open offer, which was earlier scheduled from 14 May to 27 May, after markets regulator SEBI sent the draft letter back to L&T with queries on its proposal. L&T has submitted its response on 10 May.
As the company awaits an approval on its draft, it will continue purchasing Mindtree shares from the public during market hours to complete the planned purchase of 15 percent.
After its draft is approved, Mindtree's independent directors will have two working days to provide recommendations to its shareholders on the open offer.
Shares of Mintree Ltd rose to a high of Rs 989.95 apiece in morning trade on Friday.