Shares of Coffee Day Enterprises which runs the Cafe Coffee Day outlet jumped on Wednesday morning amid reports that infra major L&T is looking to pick up owner founder VG Siddhartha’s stake in Mindtree. Coffee Day Enterprises shares gained by more than 7% to hit the day’s high at Rs 307.80 on BSE. According to a report by Livemint, L&T is set to sign a binding deal to buy Cafe Coffee Day founder VG Siddhartha’s stake in Mindtree and the deal is likely to be announced in the coming weeks.
According to the report, the deal will pave way for an open offer by L&T to increase its stake in Mindtree to 51%. This will also lead to Mindtree’s current management losing control of the company, the report added further. According to a CNBC TV18 report, the share sale could occur in the Rs 950-1,000 price band. Meanwhile, L&T shares are trading 1% lower at Rs 1,375.05. Cafe Coffee Day holds 16.37% stake in the company, valued at Rs 2,505 crore. Mindtree share price gained by more than 2.1% to hit the day’s high at Rs 936.40.
Meanwhile, the Sensex is up about 140 points to 37,677.39, while Nifty is trading above the 11,300-mark. HDFC Bank shares are trading 2.3% higher at Rs 2,220.90 while IndusInd Bank shares are up 2% to Rs 1,602 to emerge among the biggest Sensex gainers.
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