New Delhi: Infrastructure major Larsen and Toubro on Friday announced an open offer for 51.3 million shares or 31% stake of mid-tier IT company Mindtree at ₹980 per share, according to a regulatory filing. L&T will have to shell out ₹5,029.8 crore for the planned open offer for the Bengaluru-based company.

Mindtree’s equity base comprises 164.21 million shares with Mindtree holding 28.9% of them as of 6 June, according to exchange filings.

"Larsen and Toubro makes a cash offer of ₹980 per fully paid up equity share of the face value of ₹10 each, to acquire up to 5,13,25,371 equity shares representing 31 per cent of the voting share capital...to the shareholders of Mindtree Ltd," said the letter of offer communicated to the BSE by Mindtree.

The open offer price is higher by 1.1% than Mindtree's closing price of ₹969 at BSE on Friday.

The tendering for open offer will commence on June 17 and close on June 28. L&T had in March mounted a takeover bid on Mindtree when it entered into a deal to buy Cafe Coffee Day owner V G Siddhartha's 20.32% stake in Mindtree and also placed an order with brokers to pick up another 15% of the company shares from the open market.

Subsequent to these deals, L&T is required to make an open offer to buy additional stake as per the norms of the Securities and Exchange Board of India. In all, the infrastructure major is eyeing up to 66% stake in Mindtree for around ₹10,800 crore.

Mindtree founders – Chief Executive Officer Rostow Ravanan, N Krishnakumar, Subroto Bagchi and N S Parthasarathy -- have been resisting L&T’s attempts to take over the company that they deem hostile. The distinct work cultures of the two companies – with Mindtree touted as one run by employees -- has also been cited by the company’s founders as a reason to spurn L&T.

L&T’s IT arm, the listed Larsen & Toubro Infotech, posted ₹1,515 crore in net profit in 2018-19 on total revenues of ₹9,748 crore. Be that as it may, L&T has continued to push its objective of acquiring Mindtree, which if it fructifies, will put the company in the top league, currently occupied by the likes of Tata Consultancy Services, Infosys, HCL Technologies, Wipro and Tech Mahindra.

L&T’s shares closed the day at ₹1,513.25 apiece on BSE while its IT arm ended the session at ₹1,799.80 on the BSE.

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