Mindtree announces special dividend amid L&T takeover bid: 5 points

  • Mindtree's consolidated net profit grew 8.9% to 198.4 crore for the March 2019 quarter
  • Mindtree, which is facing a hostile takeover bid from L&T, announced a total dividend of 27 per share

Staff Writer
Updated17 Apr 2019, 05:34 PM IST
(Mint)

Mindtree, which is facing a hostile takeover bid from L&T, today announced a total dividend of 27 per share as the IT company announced its quarterly earnings. The mid-sized IT firm said its consolidated net profit grew 8.9% to 198.4 crore for the March 2019 quarter. Its revenue increased by 25.6% to 1,839 in the quarter, as compared to 1,464 crore in the year-ago period, Mindtree said in a regulatory filing.

In dollar terms, revenues grew $262 million, a growth of 4.2% quarter-on-quarter (constant currency growth of 3.9% QoQ). For the full fiscal year, Mindtree crossed the $1 billion milestone.

Here are 5 key things to know about Mindtree’s dividend announcements

1) Mindtree board today declared an interim dividend of 30% ( 3 per equity share of par value 10 each). The record date for payment of this interim dividend will be April 27, 2019.

2) The board also recommended a final dividend of 40% ( 4 per equity share of face value of Rs. 10 each) for the financial year ended March 31, 2019.

3) Mindtree also offered a special dividend of 200% ( 20 per equity share of face value of 10 each). The IT company said that the special dividend is to celebrate the twin achievements of exceeding $1 billion annual revenue milestone and 20th anniversary of the company.

4) The record date for the final and special dividend payouts is not know yet. The final dividend and the special dividend are payable subject to the approval of shareholders at the annual general meeting.

5) The announcement of special dividend from Mindtree also comes at a time when L&T has launched a hostile bid to acquire the IT company, the first hostile takeover bid in the Indian IT industry. On 18 March, L&T announced its plan to launch an open offer to buy an additional 31% in Mindtree after agreeing to purchase Cafe Coffee Day founder V.G. Siddhartha's 20.32% stake in the firm for 3,269 crore. L&T also said it would buy 15% stake in Mindtree from the open market. The three-part deal will see L&T buy up to 66.32% in Mindtree for around 10,700 crore at 980 per share.

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First Published:17 Apr 2019, 05:34 PM IST
HomeCompaniesCompany ResultsMindtree announces special dividend amid L&T takeover bid: 5 points

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