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<ul><li>L&amp;T now has 51.8% stake in Mindtree</li><li>73.9% of Mindtree shareholders sold in an open offer by L&amp;T</li><li>Mindtree shareholder Nalanda Capital offloaded its 10.6% stake to L&amp;T</li></ul> L&amp;T is known to have taken over controlling stake in IT services company Mindtree, pulling off a rare feat in India --- a hostile takeover. A large chunk of Mindtree shareholders tilted towards infrastructure major Larsen &amp; Toubro as 73.9% of them sold in the open offer at ₹980 a share. This has given<a href="https://www.livemint.com/companies/news/l-t-acquires-52-of-mindtree-in-indian-it-industry-s-first-hostile-takeover-1561536743325.html"> 51.8% stake in the</a> company to L&amp;T, and is known to have made over 20% stake from the offer, which was announced on June 7. The takeover turned successful after Nalanda Capital decided to offload its 10.6% stake to L&amp;T as a part of the open offer process, on June 24. Hostile takeovers are not common in India as promoters and the family own majority stake in their companies, leaving few outsiders to ever take control. Story so far However, Mindtree is one of the rare exceptions which is held by a clutch of investors and co-founder Subrato Bagchi. The takeover attempt started in March earlier when L&amp;T purchased 20% stake held by V D Siddhartha, the owner of Café Coffee Day chain for around ₹32.6 billion. After this, the promoters refused a bid to sell their stake, even as L&amp;T said it wanted to increase its shareholding to 66%. Even as L&amp;T has turned the promoter with a majority stake, during the course of the open offer more Mindtree investors are expected to concede. According to a<a href="https://www.business-standard.com/article/companies/subroto-bagchi-likely-to-offload-mindtree-stake-in-ongoing-open-offer-119062501210_1.html"> report by Business Standard</a>, the founder Subroto Bagchi, as well as Arohi Asset Management and Amansa Capital too, are in the process of giving up, to give way to L&amp;T. Interestingly, L&amp;T itself was once a target of a hostile takeover by none other than Reliance Industries which was then headed by Dhirubhai Ambani in 1987. Kumar Mangalam Birla was also one of the people who had purchased stake in the construction company, in an attempt to take over. However, timely thinking and setting up a trust by its own employees helped buy shares back. The trust is now of its biggest shareholders, after public sector insurance companies and banks.

L&T takes over Mindtree in Indian IT’s first-ever hostile acquisition

<ul><li>Mindtree shares open the week with gains of over 2% </li><li>L&amp;T is set to make a hostile bid as the company's founders refuse let go of control</li><li>Company's strategic investor, coffee baron VG Siddhartha, is expected sell his 21% stake to L&amp;T</li></ul> Indian technology services company Mindtree, backed by coffee baron VG Siddhartha, is at the centre of a takeover battle between the company's founders and one of the country's biggest conglomerates, Larsen and Toubro (L&amp;T). Shares of Mindtree opened the day up over 2% on Monday (March 18) as investors expect the battle for control between the hostile suitor L&amp;T, which has proposed to buy out <a href="https://tech.economictimes.indiatimes.com/news/corporate/mindtree-founders-plan-buyback-wall-to-block-lt/68435104" data-type="tilCustomLink" target="_blank">Siddhartha's 21% stake</a> in the company, and the existing leadership determined to keep control of the company. If L&amp;T pulls it off, it would be the first hostile takeover of an Indian IT company. The founders, Krishnakumar Natarajan, Subroto Bagchi, NS Parthasarathy and Rostow Ravanan, together own 13.32% stake in the company and they are so reluctant to let go of the company that Bagchi left a government job to avert a hostile takeover of Mindtree by L&amp;T. 
	
	
	
	
	
	
	
	
	<div type="twitter" handle="skilledinodisha" handlename="Subroto Bagchi" image="http://pbs.twimg.com/profile_images/727342138430771200/Kf0tzvdR_normal.jpg" favoritecount="418" retweetcount="101" status="Mindtree has not been designed as an “asset” to be bought &amp; sold. It is a national resource. It has a unique cultur… https://t.co/x9uT0UQ25s" createdat="1552835669000" id="1107299169415225345"></div>



















 The board of directors informed the stock exchange on Friday that it will consider a share buyback in a meeting on March 20. The move has come after the founders <a href="https://www.livemint.com/" data-type="tilCustomLink" target="_blank">reportedly</a> could not find private equity investors to counter L&amp;T's offer. L&amp;T <a href="https://timesofindia.indiatimes.com/business/india-business/lt-to-make-1st-ever-hostile-bid-in-indian-it-for-mindtree/articleshow/68457037.cms" data-type="tilCustomLink" target="_blank">reportedly</a> plans to spend $1 billion, including an open offer to minority investors, to gain controlling stake in the company. Indian takeover laws mandate that the suitor must buy shares worth 26% of the target company from the open market, if the stake in the target exceeds 25%. L&amp;T's offer price for another 31% stake in Mindtree may be around ₹980 apiece, a 4% premium to Friday’s closing price, the Economic Times reported. A share buyback by the existing board of directors at Mindtree would mean the company will use a part of its existing ₹2.8 billion reserves to thwart L&amp;T's bid. Investors may not like that, especially, at a time when there is premium offer on the table. On the other hand, L&amp;T Infotech, which is the conglomerate's IT subsidiary, has already lost a lot of share value since January when the rumours of the takeover surfaced. Investors <a href="https://www.livemint.com/market/mark-to-market/l-t-infotech-shares-already-carry-scars-of-meddling-with-mindtree-1552842303673.html" data-type="tilCustomLink" target="_blank">fear merging with Mindtree</a>, which has only one large client that is Microsoft, may hurt the performance of L&amp;T Infotech, whose stock price has more than doubled in the last three years and has a <a href="https://economictimes.indiatimes.com/tech/ites/lt-set-to-seal-mindtree-deal-with-caf-coffee-day-founder-vg-siddhartha/articleshow/68457010.cms" data-type="tilCustomLink" target="_blank">significantly wider profit</a> margin of 16% compared to Mindtree's 10%.

India begins a new trading week with a hostile takeover battle between Mindtree's founders and L&T

<ul><li>L&amp;T management reassured investors after its hostile takeover of Mindtree</li><li>The conglomerate's IT subsidiary L&amp;T Infotech and Mindtree will operate as separate entities</li><li>Investors in Mindtree will be given an open offer at ₹980</li><li>L&amp;T will even consider to buy back shares from Mindtree's investors</li></ul> Shares of L&amp;T Infotech gained over 3.7% during mid-day trade on Tuesday (March 19) after a reassurance from the L&amp;T managment. "Our intent is to keep both of them separate,” President SN Subrahmanyan said at a press conference after the conglomerate, which spans businesses from infrastructure to information technology, bought a controlling stake in the Bengaluru-based Mindtree. This will be the first hostile takeover of an Indian information technology (IT) services firm as Mindtree's founders resisted the takeover by L&amp;T. L&amp;T Infotech, which is the conglomerate's IT subsidiary, has already lost a lot of share value since January when the rumours of the takeover surfaced. Investors <a target="_blank" href="https://www.livemint.com/market/mark-to-market/l-t-infotech-shares-already-carry-scars-of-meddling-with-mindtree-1552842303673.html">fear merging with Mindtree</a>, which has only one large client that is Microsoft, may hurt the performance of L&amp;T Infotech, whose stock price has more than doubled in the last three years and has a <a target="_blank" href="https://economictimes.indiatimes.com/tech/ites/lt-set-to-seal-mindtree-deal-with-caf-coffee-day-founder-vg-siddhartha/articleshow/68457010.cms">significantly wider profit</a> margin of 16% compared to Mindtree's 10%. However, Subrahmanyan explained that L&amp;T Infotech will continue its existing focus on banking, insurance etc, whereas Mindtree will operate in retail and hospitality. L&amp;T will buy coffee baron VG Siddhartha's20.4% stake in the the mid-tier IT services company Mindtree for approximately ₹3,300 crore. L&amp;T also intends to purchase an additional stake of upto 15% from the open market and another 31% from Mindtree shareholders at ₹980 per share.

L&T Infotech and Mindtree will remain separate and the open offer will be at ₹980

<ul><li>After <keyword id="90593" type="COMPANY" weightage="20" keywordseo="Larsen-and-Toubro">Larsen and Toubro</keyword>’s (L&amp;T) hostile takeover of Mindtree, the company’s leading executives have resigned and it’s taking a toll on the company’s growth trajectory. </li><li>Mindtree’s quarterly results show a 41% yearly dip in net profits and a 53% drop in quarterly net profits.</li><li>Macquarie has revised the rating on Mindtree’s stock to ‘underperform’ expecting earnings per share to drop by at least 21%.</li><li>All eyes are on AM Naik, the company’s newly appointed non-executive chairman, to turn things around.</li></ul>The dramatic takeover of India’s IT consulting firm, <a href="https://www.businessinsider.in/lt-infotech-and-mindtree-will-remain-separate-and-the-open-offer-will-be-at-980/articleshow/68477363.cms">Mindtree</a>, by Larsen and Toubro (L&amp;T) had its leading executives walking away and the company’s growth has taken a big hit. As the L&amp;T veteran and a marquee business leader in India, AM Naik, takes over as the non-executive Chairman of Mindtree, all eyes are on him to revive the firm’s fortunes. Last night, Mindtree reported a 41% dip in its year-on-year net profits from ₹158 crores last year to ₹93 crore this quarter. Its quarterly net profits showed an even larger drop of 53% from ₹198 crore last year. The share price of Mindtree was down nearly 5.5% at 10:20 am on Thursday. Mindtree’s revenue for the current quarter shows an 11% increase in comparison to last year’s first quarter from ₹1,640 crore to ₹1,834 crore. But quarter-to-quarter, the revenue growth is flat. Macquarie, an Australian financial services company, cut the rating on Mindtree’s stock to ‘Underperform’ estimating a drop of 21.6% to 24.8% in earnings per share largely due to executives leaving the company while the business slowed down amidst the takeover drama. Hostility and fear In March last year, L&amp;T — an infrastructure and construction company — instigated a <a href="https://www.businessinsider.in/mindtree-takeover-battle-lt-deals-the-first-blow-buying-coffee-baron-vg-siddharthas-stake/articleshow/68475544.cms">hostile takeover</a> of Mindtree by acquiring 20.4% stake in the company by buying shares from V.G. Siddhartha, the man behind the Cafe Coffee Day franchise in India. And, on June 27 this year, L&amp;T had 61% of the company’s controlling shares. This is reportedly the <a href="https://www.businessinsider.in/lt-has-51-8-stake-in-mindtree-after-open-offer/articleshow/69960033.cms">first time</a> that a company has successfully completed a hostile takeover in India’s IT space. The IT firms’s chief executive officer (CEO), chairman and vice chairman had to file their resignations. Subroto Bagchi, Mindtree’s co-founder, is also set to retire at the end of the month and hasn’t asked to be reappointed to the company’s board. The stock of Mindtree has lost over a quarter of its value in the last three months as the drama played out. See also: <a href="https://www.businessinsider.in/lt-has-51-8-stake-in-mindtree-after-open-offer/articleshow/69960033.cms">L&amp;T takes over Mindtree in Indian IT’s first-ever hostile acquisition</a> <a href="https://www.businessinsider.in/lt-infotech-and-mindtree-will-remain-separate-and-the-open-offer-will-be-at-980/articleshow/68477363.cms">L&amp;T Infotech and Mindtree will remain separate and the open offer will be at ₹980</a> <a href="https://www.businessinsider.in/mindtree-takeover-battle-lt-deals-the-first-blow-buying-coffee-baron-vg-siddharthas-stake/articleshow/68475544.cms">Mindtree takeover battle: L&amp;T deals the first blow buying coffee baron VG Siddhartha's stake</a>

The exodus of Mindtree executives has dented earnings and now shareholders are running for the hills — over to AM Naik

<ul><li>VG Siddhartha is reportedly missing near Netravati River in Mangalore since Monday night.</li><li>The development came in after the Mangalore City Police started a search operation at 9 pm to look for a man who might have jumped off a kilometer-long bridge in Ullal.</li><li>Siddhartha reportedly faced a cash crunch earlier this year after the default by infrastructure lending giant IL&amp;FS, which forced him to sell stake in the IT firm <keyword id="6357902" type="COMPANY" weightage="20" keywordseo="mindtree">Mindtree</keyword>.</li></ul><keyword id="46195" type="COMPANY" weightage="20" keywordseo="Cafe-Coffee-Day">Cafe Coffee Day</keyword> founder and son-in-law of ex-Karnataka Chief Minister SM Krishna, VG Siddhartha , is reportedly missing near Netravati River in Mangaluru since Monday night. Police says, his phone is switched off, the Times of India <a href="https://timesofindia.indiatimes.com/city/mangaluru/ccd-coffee-day-founder-v-g-siddhartha-missing/articleshow/70442484.cms">reported</a>. The development came in after the Mangalore City Police started a search operation at 9 pm to look for a man who might have jumped off a kilometer-long bridge in Ullal. According to the report, Siddhartha may be the missing 'man' since he reached Mangaluru at 8 pm in his SUV and ask the driver to drop him at the bridge in Ullal. The 58-year-old entrepreneur was in talks with Coca-Cola to sell considerable stake in his coffee chain. The deal was <a href="https://www.businesstoday.in/current/corporate/coca-cola-coke-cafe-coffee-day-ccd-stake-sale-beverage-maker-indias-largest-coffee-chain/story/359387.html">supposed to be closed</a> by the end of March 2020. VG Siddhartha came from a coffee-growing family, which owned 15,000 acres of coffee estate in <keyword id="57240" type="CITY" weightage="20" keywordseo="Chikmagalur">Chikmagalur</keyword> in <keyword id="6354780" type="ENTERTAINMENT" weightage="20" keywordseo="Karnataka">Karnataka</keyword>. He launched the first Cafe Coffee Day (CCD) outlet on <keyword id="18382" type="ORGANIZATION" weightage="20" keywordseo="brigade-road">Brigade Road</keyword> in Bengaluru. The chain currently has 1,750 outlets and over 60,000 vending machines spread over Nepal, Malaysia, Czech Republic, and Egypt, <a href="http://www.coffeeday.com/PDF/Coffee_Day_Annual_report_2018.pdf">aside from 245 cities in India. </a> The coffee baron had reportedly been <a href="https://www.livemint.com/companies/news/why-v-g-siddhartha-went-with-l-t-ignoring-mindtree-promoters-1553710517498.html">cornered by a cash crunch</a> after the default by infrastructure lending giant IL&amp;FS triggered a liquidity crisis in the country. Siddhartha had to sell his 20.4% stake in the IT firm Mindtree to L&amp;T against the wishes of Mindtree’s founders who Siddhartha had backed since 1999. SEE ALSO: <a href="https://www.businessinsider.in/lt-has-51-8-stake-in-mindtree-after-open-offer/articleshow/69960033.cms">L&amp;T takes over Mindtree in Indian IT’s first-ever hostile acquisition</a> <a href="https://www.businessinsider.in/mindtree-takeover-battle-lt-deals-the-first-blow-buying-coffee-baron-vg-siddharthas-stake/articleshow/68475544.cms">Mindtree takeover battle: L&amp;T deals the first blow buying coffee baron VG Siddhartha's stak</a>e

Coffee baron VG Siddhartha, the founder of India's iconic chain Cafe Coffee Day, is missing

<ul><li>In its board meeting, the Securities and Exchange Board of India has allowed the issuance of <keyword id="145734" type="PERSON" weightage="20" keywordseo="differential-voting-rights">Differential Voting Rights</keyword> for listech tech companies. </li><li>This will help promoters keep control of their company without having to dilute their power for financial help.</li><li>This is a positive step which will help companies head for an IPO in an easier manner.</li></ul>India’s Securities and Exchange Board of India has allowed Differential Voting Rights for listed companies in its board meeting which was held today. With Differential Voting Rights, companies whose promoters hold skill and talent to run the business can sell shares giving away their control in the company. This new framework comes in handy for companies who do not want hostile takeovers by investors. A recent case in point is the L&amp;T’s hostile takeover of Mindtree, where the former took a <a href="https://www.livemint.com/companies/news/with-60-stake-l-t-completes-its-hostile-takeover-of-mindtree-1561536743325.html">60%</a> controlling stake in the latter. "Raising equity on a periodic basis leads to dilution of founder/ promoter stake, which can be effectively addressed through the use of DVRs as a mode of capital raising.This is especially relevant for new technology firms which have asset light models, with little or no need for debt financing,” the <keyword id="35210" type="ORGANIZATION" weightage="20" keywordseo="sebi">SEBI</keyword> discussion paper on the issue had noted. "Having a specific listing framework for DVRs of tech start-ups only shows that SEBI recognises the need to encourage entrepreneurship in nano-technology and biotech. India had been wary of introducing this in the past because many listed companies in India are promoter driven till date. The introduction and success of DVRs also requires balancing other concerns. It remains to be seen how this pans out from a corporate governance viewpoint,” said Sumit Agrawal of Regstreet Law &amp; ex-Sebi official. But will the issuance of DVR make it easier for startups in India to head the IPO way? Experts believe it is at least the first right step. “Superior rights to be considered as ‘control’ under takeover code, relaxation from lock-in requirements before IPO, implementation of sunset clause and threshold to consider such superior shareholders a part of promoter group, are some issues requiring clarity. Right now, it’s only a policy approval from SEBI, the letters of law in gazette notification is yet awaited.” said Agrawal.

Differential voting rights are good for Indian startups aiming for IPO – but not enough

<ul><li>V G Siddhartha made as much as ₹2,858 crore by offloading his stake in Mindtree. </li><li>His venture Way2Wealth has been piling up debt, while clocking in losses. </li><li>‘Coffee King’ was his success at convincing the government to ease its strict policies and duties, </li><li>His plan of building coffee houses which also doubled as Internet cafes was a hit with Bangaloreans. </li></ul> Just a few months back, V G Siddhartha made <a href="https://www.businesstoday.in/top-story/vg-siddhartha-made-a-profit-of-rs-2858-cr-from-his-mindtree-stake-sale-to-lt/story/329612.html">as much as </a>₹2,858 crore by offloading his stake in Mindtree. That could have felt like a windfall for anyone else. Not for Siddhartha who had financial and other troubles piling up. At the time he went missing on Monday (July 30), a <a href="https://www.businessinsider.in/business/cafe-coffee-day-founder-vg-siddhartha-letter-to-board-of-directors/articleshow/70443951.cms">letter surfaced </a>where he allegedly took the blame for bad business decisions but also accused lenders and tax officials of putting undue pressure on him. Ever since, Income Tax Department raided his premises in 2017, he had been on a downhill. He is known to<a href="https://www.livemint.com/industry/infotech/why-ccd-founder-siddhartha-wants-to-sell-his-mindtree-stake-1548698619358.html"> owe as much</a> as ₹300 crore to IT authorities. This drove him to sell his stake in the IT company where he was invested since 1999. The Silver Spoon The stress of failure was too much for Siddhartha who has known success and only success even when he took risky bets. Siddhartha had a charmed birth as he was born into a family which owned coffee plantations, and been in the business for 135 years. The heir apparent was not content running his family business, and his adventurous spirit was stoked by his own father who gave him ₹5 lakhs right after he completed his Masters in Economics from the Mangalore University. He went on to learn the nitty gritty of stock markets by working with JM Financial before he started his own stock broking and investment banking firm, Sivan Securities. Yet, his legacy called him back and he started exporting coffee. Legend of the Coffee King What earned him his name ‘Coffee King’ was his success at convincing the government to ease its strict <a href="https://www.yosuccess.com/success-stories/v-g-siddhartha-cafe-coffee-day/">policies and duties</a>, which made life tough for Indian planters. With the inflated taxes gone, the golden period of coffee traders started. Yet again, Siddhartha refused to sit back and enjoy his cuppa. He wanted more. Against good counsel backed by research which said that branded coffee will not find success, he ventured yet again. At a time when coffee was made out of filters, he set up 20 stores in Bangalore which sold only coffee powder. As it was foretold, it saw limited success. Hot, steaming coffee with a side of Internet Like every visionary, he saw that having coffee is not just about the product. It was about providing an experience. As the café culture picked up internationally, he went ahead and set up cafes and added a topping---Internet. His plan of building coffee houses which also doubled as Internet cafes took care of both the basic necessities of Bangaloreans. And, the first such store came into being in the most fashionable area of the city, Brigade Road. As it the city itself turned into an IT hub from a pensioner’s paradise, he minted millions--one cup at a time. The golden cage In good times, his networth was just over a $1 billion. As of now, Cafe Coffee Day is one of the biggest coffee chains in the world with over 1,772 outlets India and others like Egypt, Malaysia, Czech Republic and Nepal. The investment banker’s own venture Sivan Securities, re-named as Way2Wealth has been piling up debt, while clocking in losses. It is known to have a debt of ₹168 crore as on March 2018. He was also stressed by the hostile takeover of Mindtree buyout. As the promoters struggled to stay in control, infrastructure major L&amp;T had been buying out investors, and eventually succeeded. In his letter, Siddhartha also said that the IT department had tried to block the sale of his shares, in spite of filing revised returns. Siddhartha’s spiral was fast. The debt on Coffee Day Enterprises ballooned 1.5 times in the last three years and the pressure on him was intense. Even as Indian policymakers celebrate new bankruptcy laws -- which promise to make liquidation of businesses easier-- the disappearance of India’s most-famous coffee baron is a sign that business failures can quickly turn fatal. SEE ALSO <a href="https://www.businessinsider.in/business/full-profile-of-cafe-coffee-day-founder-v-g-siddhartha/articleshow/70445413.cms">Full text of the letter written by Cafe Coffee Day founder VG Siddhartha before he went missing</a> <a href="https://www.businessinsider.in/markets/cafe-coffee-day-share-price-down-20-after-founder-vg-siddhartha-goes-missing/articleshow/70445091.cms">Cafe Coffee Day shares have lost ₹800 crore in value after founder VG Siddhartha goes missing</a>

You Searched For "Mindtree Takeover" and got 7 results

L&T takes over Mindtree in Indian IT’s first-ever hostile acquisition

Katya Naidu

India begins a new trading week with a hostile takeover battle between Mindtree's founders and L&T

Sriram Iyer

L&T Infotech and Mindtree will remain separate and the open offer will be at ₹980

Sriram Iyer

The exodus of Mindtree executives has dented earnings and now shareholders are running for the hills — over to AM Naik

Prabhjote Gill

Coffee baron VG Siddhartha, the founder of India's iconic chain Cafe Coffee Day, is missing

Preeti Soni

Differential voting rights are good for Indian startups aiming for IPO – but not enough

Sanchita Dash

India’s coffee king V G Siddhartha’s journey from silver spoon to a gilded cage

Katya Naidu

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