The Independent Directors Committee (IDC) set by Mindtree to review Larsen & Toubro Ltd's (L&T) open offer said that it "appears to be fair and reasonable." It also said that the engineering conglomerate's offer of Rs 980/share is in accordance with SEBI's takeover rules (Substantial Acquisition of Shares and Takeovers).
It explained that considering the market prices for Mindtree's equity shares at Rs 974 and Rs 975 on BSE and NSE, respectively, on 10 June, the offer price of Rs 980/share was reasonable and fair.
In a filing with BSE on Wednesday, the IDC further said, "The shareholders of the target company are advised to independently evaluate the open offer and take an informed decision about tendering equity shares held by them in the open offer."
L&T's open offer for Mindtree shares opens on 17 June and ends on 18 June.
L&T has been looking to take over the Bengaluru-based IT firm by increasing its shareholding by up to 66 percent. According to its plan and in compliance with SEBI norms, it has acquired 29 percent of the IT firm, of which it purchased 20.32 percent that was jointly held by Cafe Coffee Day's founder V.G. Siddhartha and two of CCD's associate firms. The rest was added from its purchases made in the open market. L&T has been gradually buying shares to add an additional 15 percent from the open market and will purchase another 31 percent via an open offer.
The open offer plan draft was submitted to SEBI and the exchanges on 2 April and was scheduled to be held between 14 to 27 May, but was postponed by more than a month due to delay in approval of its draft plan by the market regulator.
An IDC headed by Apurva Purohit was set up by Mindtree to give its views and recommendations to the shareholders before the open offer launch.