Facing a Rs 10,800-crore hostile takeover bid from Larsen & Toubro (L&T), the board of Mindtree on Wednesday did not take any decision on proposed buyback of shares.
Promoters of the Bengaluru-based IT firm have opposed the takeover bid. In a filing to the stock exchanges, Mindtree said its board on Wednesday considered the proposal to buy back shares.
"Following detailed discussions, the meeting has been adjourned to a future date. No decision has been taken in relation to the proposed buyback of equity shares," the filing said.
On Monday, diversified L&T made an offer to buy up to 66 per cent stake in Mindtree for around Rs 10,800 crore.
L&T has entered into a deal to buy Cafe Coffee Day owner V G Siddhartha's 20.32 per cent stake in Mindtree and has also placed an order with brokers to pick up another 15 per cent of the company shares from the open market.
Further, the group would make an open offer to buy additional 31 per cent stake in Mindtree.
Siddhartha was a director of Mindtree since 1999 and resigned in March 2018. He along with Cafe Coffe Day group firms has 20.32 per cent stake in Mindtree and that shareholding is to be acquired by L&T.
On Tuesday, Mindtree CEO and promoter Rostow Ravanan said the company's board would deliberate on the buyback or the open offer within the framework of the laws.
"Obviously there are laws - what the board can do and cannot do under the circumstances," he had said.