Mindtree Shares Fall To A 4-Month Low As L&T Officially Becomes Promoter

Shares of Bengaluru-based IT firm Mindtree on Thursday fell by over 1.7 percent to its lowest since 27 February 2019. The stock touched an intraday low of Rs 890.50 apiece on NSE.

On Wednesday evening, Mindtree in a statement to the exchanges announced the over 60 percent stake acquisition and made L&T's position as a promoter of the company official.

"Larsen & Toubro Limited (L & T) has acquired 60.06 percent equity shares of the total shareholding of the company and has acquired control and is categorised as Promoter pursuant to SEBI Regulations, 2018," it said in a BSE filing.

L&T's open offer, between 17 and 28 June, to purchase 31 percent of Mindtree's shares, was oversubscribed.

In March, the engineering behemoth 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. It gradually added an additional 15 percent from the open market and purchased another 31 percent from its open offer.

Last month, Mindtree's board had appointed five new directors, including L&T's CEO and Managing Director SN Subrahmanyan. Full-time director in L&T and Senior Executive Vice President for L&T's Defence Business Jayant Damodar Patil was appointed as a non-executive director at the board. Ramamurthi Shankar Raman, full-time director and Chief Financial Officer in L&T was also appointed as a non-executive director.

Mindtree's co-founder Subroto Bagchi, who will retire on 16 July 2019, has not offered to be re-appointed.