"The company's board of directors at its meeting on March 26 has decided not to proceed with a buyback of equity shares of the company," said Mindtree in a regulatory filing on the BSE.
The board, however, invited views from the directors on the unsolicited offer made by L&T for the company's equity shares.
Earlier in the day, L&T offered to buy over 5.13 crore shares or 31 per cent of Mindtree's equity stake for Rs 5,030 crore at Rs 980 per share of Rs 10 face value.
"L&T has made an open offer to acquire 5,13,25,371 equity shares of Rs 10 face value, representing 31 per cent of the voting share capital from shareholders of Mindtree with an intention to take control of the target company," Mindtree said in an earlier filing on the BSE.
The offer opens on May 14 and closes on May 27.
The Mindtree board also decided to set up a committee of independent directors (IDC) to recommend its views on the L&T offer for the consideration of the shareholders.
"As IDC members, the independent directors elected Apurva Purohit as chairperson and spokesman of the IDC, which will evaluate the offer, taking account facts, circumstances and the data of the company, the industry and the shareholders," said the filing.
The committee will also discharge the legal obligations of the independent directors under the regulations with respect to its recommendations on the L&T offer
The committee will be supported by legal and financial advisors to help it with its deliberations, added the filing, quoting Mindtree Company Secretary S. Vedavalli.
The Mumbai-based L&T has bought 20.4 per cent shares in Mindtree for Rs 3,300 crore at Rs 980 per share from Coffee Day Enterprise owner V.G. Siddhartha on March 18 and plans to acquire an additional 15 per cent in the secondary market through the stock exchanges.
With the open offer, L&T hopes to have 66 per cent of the Mindtree equity stake by May.
This is the second high profile exit in as many days at the grounded Jet Airways after Deputy CEO Amit Agarwal put in his papers on Monday.
In a filing to stock exchanges, the airline said Dube has "resigned from the services of the company with immediate effect due to personal reasons".
After hitting a high of 31,225.20 during the day, the 30-share BSE barometer ended 1,265.66 points or 4.23 per cent higher at 31,159.62.
Similarly, the NSE Nifty soared 363.15 points, or 4.15 per cent, to 9,111.90.
Mahindra and Mahindra was the top gainer in the Sensex pack, surging over 16 per cent, followed by Maruti, Titan, Bajaj Finance, HDFC, Bajaj Auto and Hero MotoCorp.
On the other hand, HUL, Tech Mahindra, IndusInd Bank and Nestle were the laggards.
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"Indian markets started trading on a positive note taking upbeat cues from its Asian peers in the morning session as policymakers discussed the process of reopening the global economy as data showed a slowing spread of Covid-19," said Narendra Solanki, Head- Equity Research (Fundamental), Anand Rathi.
During the afternoon session, market further strengthened on back of expectations of second stimulus package estimated at around Rs 1 lakh crore and focus on helping small and medium businesses, which led to both broad-based buying and also triggered some short covering, he added.
A Bank of America Securities report said the Centre may soon announce another fiscal package which may be almost similar to the Rs 1.75 lakh crore stimulus unveiled last month.
Elsewhere in Asia, bourses in Shanghai, Hong Kong, and Seoul ended on a positive note, while Tokyo closed in the red.
Stock exchanges in Europe started significantly higher. Meanwhile, the rupee provisionally settled 6 paise higher at 76.28 against the US dollar.
Brent crude futures, the global oil benchmark, rose 4.2 per cent to USD 34.16 per barrel.
The death toll due to the novel coronavirus in India rose to over 160 and the number of cases crossed 5,700, according to the Union Health Ministry.
Global tally of the infections has crossed 14.8 lakh, with over 88,000 deaths.
(With PTI Inputs)
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