Coffee Day share price jumps amid reports that L&T looks to buy VG Siddhartha’s Mindtree stake

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March 13, 2019 1:11 PM

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, Income Tax Department, MindTree shares, V G SiddharthaCoffee Day Enterprises shares gained by more than 7% to hit the day’s high at Rs 307.80 on BSE.

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.

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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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