The acquisition will largely depend on the success of the open offer and the participation of the FIIs in the offer. As of the close of 24th of May, Larsen & Toubro has already acquired close to 28.5% of the total shares of Mindtree. You will remember that they had acquired 20% stake from V G Siddhartha, owner of Café Coffee Day, who was one of the initial investors in Mindtree. Subsequently, L&T has been gradually adding up its position in Mindtree by buying shares in the open market. L&T wants to eventually take its stake in Mindtree up to 66%. The idea is to leverage the digital business capabilities to combine with the traditional BFSI capabilities of L&T Infotech.

As per the SEBI Takeover Regulations, L&T is required to make an open offer to the existing shareholders and the open offer was supposed to open on May 14th and last up to May 27th. However, the SEBI approval for the open offer did not come on time and hence the open offer has been postponed. L&T plans to increase its stake in Mindtree to 66% through this open offer. However, the success of the open offer will largely depend on whether the Foreign Portfolio Investors (FPIs) participate in the offer or not. FPIs hold over 40% of the shares in Mindtree and the open offer will not be able to succeed without their support. Historically, FPIs have stood by the current management and have avoided supporting hostile takeovers. This will be crucial in the future course of the open offer.