Shares of engineering behemoth Larsen & Toubro (L&T) surged to a fresh 52-week high of Rs 1,590 apiece on Monday on BSE, as well as NSE. The company raised its stake in Bengaluru-based Mindtree Ltd by around 2 percent between 20 to 24 May by purchasing shares worth over Rs 316 crore from the open market.
BSE's data for 25 May showed that L&T acquired shares of Mindtree from the open market throughout the week with the highest number of shares being purchased on 24 May, that is nearly 25 lakh shares at Rs 980 apiece.
L&T is looking to take over Mindtree, the first hostile takeover in the Indian IT sector, by increasing its shareholding by up to 66 percent. It has already purchased 20.32 percent stake in Mindtree jointly held by Cafe Coffee Day's founder V.G. Siddhartha and two of CCD's associate firms. The company has been gradually adding an additional 15 percent from the open market and intends to purchase another 31 percent from an open offer, according to its draft plan submitted to SEBI and the exchanges on 2 April.
Additionally, post the election results, brokerages have increased their bet on L&T with renewed emphasis on the BJP-led NDA government's promises of infrastructural development in the country. Motilal Oswal Financial Services picked the company as one of their large-cap stock bets.
In the fourth quarter of financial year 2018-19, L&T reported an 8 percent increase in its net profit to Rs 3,418 crore.