Mindtree takes share buyback route to fend off L&T; size may be Rs 1,000 cr

Mindtree will consider a share buyback proposal in its next board meeting on March 20, the company said on Friday, amid reports that Larsen & Toubro’s (L&T’s) board had cleared a proposal to buy Cafe Coffee Day founder V G Siddhartha’s 21 per cent stake in the mid-size information technology services firm. While Mindtree didn’t provide any details on the size of buyback, sources in the know said it could be to the tune of Rs 1,000 crore.

L&T said it didn’t comment on market speculation.

Analysts and IT industry executives said a share buyback when one of the largest shareholders was planning to offload his stake was unprecedented and could create hurdles for any rival technology firm to come on board.