Mindtree’s Rs 530-cr dividend payout to make its takeover costlier for L&T

Amid L&T takeover bid, Mindtree on Wednesday announced interim, final and special dividends for its shareholders, totalling Rs 27 per share.

This move may push up the acquisition cost for the engineering major. This will result in an outgo of around Rs 530 crore, including dividend distribution tax (DDT), from the company’s kitty. The cash reserves stand at around Rs 1,100 crore by end of March 2019.

The dividends have been declared to commemorate completion of 20 years of the company’s operations apart from crossing the $1 billion revenue milestone in the last financial year, the IT services company said.

According to the company, while the interim dividend of Rs 3 per share will be payable to its shareholders with a record date of April 27, final and special dividend of Rs 4 and Rs 20 will be given after receiving shareholders’ approval in its next annual general meeting (AGM).