Mindtree independent directors should guide shareholders, says IiAS

Independent directors of Mindtree have a key role to play in the ongoing tussle between Larsen and Toubro (L&T) and Mindtree promoters to wrest control of the IT services company, said proxy advisory firms IiAS and InGovern.

“The independent directors of Mindtree must provide guidance to the company’s shareholders whether they should take up L&T’s open offer,” said IiAS in a note, adding that investors will not be in a position to understand all the nuances of the deal.

Nearly 87 per cent of Mindtree’s stocks are with public shareholders, which includes foreign portfolio investors (FPIs) and mutual funds (MFs). Cumulative FPI holding in the company is more than 40 per cent. Some of the top overseas shareholders of Mindtree include Nalanda, Amansa and Vanguard. Meanwhile, UTI MF and L&T MF are domestic fund houses holding more than 1 per cent stake.