Mindtree board on Tuesday decided not to proceed with the proposed buyback of equity shares of the company and it has formed a panel of directors to evaluate the open offer from L&T, the company said in an exchange filing.

"After detailed deliberation and discussion, the board in its meeting today, decided to immediately constitute the committee of independent directors (IDC) in the interest of all stakeholders to provide their reasoned recommendation in respect of the unsolicited offer by L&T for the consideration of the shareholders," it said.

Last week, diversified L&T made an offer to buy up to 66 percent stake in Mindtree for around Rs 10,800 crore - a move that Mindtree promoters have vowed to oppose.

L&T has entered into a deal to buy Cafe Coffee Day owner VG Siddhartha's 20.32 percent stake in Mindtree and has also placed an order with brokers to pick up another 15 percent of the company shares from the open market.

Further, the group would make an open offer to buy an additional 31 percent stake in Mindtree.

Siddhartha was a director of Mindtree since 1999 and resigned in March 2018. He and Cafe Coffee Day group firms have 20.32 percent stake in Mindtree and that shareholding is to be acquired by L&T.

Mindtree CEO and promoter Rostow Ravanan last week said the company's board would deliberate on the buyback or the open offer within the framework of the laws.

"Obviously there are laws - what the board can do and cannot do under the circumstances," he had said.

-With inputs from PTI.

First Published:Mar 26, 2019 4:21 PM IST