Mindtree surges over 2% on share buyback plan announcement

Shares of Mindtree surged as much as 2.38 per cent to Rs 968.55 in the early trade on Monday after the company announced it will consider share buyback plan on March 20 to fend off attempts by engineering major Larsen & Toubro (L&T) from making a hostile takeover bid.

The announcement of a possible share repurchase has come amid reports of L&T’s board giving the green signal to buy Café Coffee Day founder VG Siddhartha’s 20.41 per cent stake in Mindtree.

As corporate action like a buyback usually pushes up the share price, many analysts had seen it as an attempt by the management to make it costlier for any acquirer to take control of the company, apart from rewarding existing shareholders.