Shares of IT company Mindtree rose as much as 2.38 percent to Rs 968.55 per share after the company said it is considering a share buyback proposal of the fully paid-up equity shares of the company on the March 20 meeting.

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At 11:40 AM, the shares of the company rose by 1.53 percent at the BSE.

The development comes as the company is going through a takeover war with its rival company Larsen and Toubro (L&T) and the founders have raised their voice against the rival's 'hostile takeover' of VG Siddhartha's shares in the company as Siddhartha looks to sell his stake.

If the share buyback proposal is approved, the company's founders and also promoters, will be able to avert the takeover by L&T. However, media reports said that L&T is likely to announce the acquisition by Monday itself, that is before the board meeting.

Subroto Bagchi, one of the co-founders has also resigned from his government post — head of Odisha's Skill Development Authority — to save his company from this takeover.

His decision of resigning from the government post came after reports claimed that the board L&T has reportedly approved the acquisition of VG Siddhartha's 24.4 percent stake in Mindtree at Rs 981 per share and that the company is likely to sign a term sheet with Siddhartha by March 18.