Engineering major Larsen and Toubro (L&T) has signed a deal with Cafe Coffee Day founder VG Siddhartha to buy 20.32 percent stake in leading services firm Mindtree at Rs 980 per share for about Rs 3,300 crore, in a bid to acquire the firm.

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Siddhartha is the biggest shareholder in Mindtree.

The company has also placed an order with brokers to pick up another 15 percent of the company shares from the open market. Subsequent to these deals, L&T would make an open offer to buy an additional 31 percent stake through an open offer.

Siddhartha will get around an estimated amount of Rs 3,271.52 crore from L&T as the company is buying his 20.32 percent stake for Rs 980 per share. He will also get another Rs 79.35 crore for selling 0.92 percent stake for about Rs 525 per share.

In 1999, Siddhartha invested Rs 44 crore in Mindtree and bought 6.6 percent stake. In 2011, he invested Rs 85 crore and Rs 40 crore to buy a stake of 5.75 percent and 2.05 percent, respectively.

Also, in 2012, Siddhartha invested Rs 171 crore to buy 6.84 percent stake in Mindtree.

In total, he invested Rs 340 core in the IT company. Twenty years later when Siddhartha is leaving the company, he will take a massive profit of around Rs 3,011 crore if compared it with what he invested in Mindtree over the years.

First Published:Mar 19, 2019 9:56 PM IST