Mumbai, July 28 (IANS) At Rs 689 a share, Mindtree is down nearly 30 per cent from Rs 980 apiece, the price at which Larsen & Toubro acquired majority shares in Mindtree after a hostile takeover bid, the first ever in Indian IT sector history.
However, investors as of now, don't seem to have taken Mindtree's transition very positively, despite it being acquired by a wealthy parent.
Mindtree hit a 52-week low on July 22 as the company's top brass quit after months of fierce criticism and resistance.
Also, investor interest dimmed after the company reported a 41 per cent drop in its quarterly profit.
Although most global brokerages have maintained their ratings on Mindtree, the target price has been cut by many of them.
Kotak Institutional Equities has maintained its 'reduce' call on Mindtree but slashed its target price to Rs 725.
Similarly, BNP Paribas, which retained its 'reduce' call on Mindtree, slashed its target price to Rs 670, from the earlier Rs 810.
Motilal Oswal Securities maintained a 'neutral' view on the stock with a target price of Rs 750.
The takeover bid was initiated by L&T acquiring Cafe Coffee Day boss V.G. Siddhartha's shares which had made him the largest shareholder in Mindtree.
Subsequently, L&T increased its holding with purchase of more shares from the open market and an open offer on May 14 for additional 31 per cent stake for Rs 5,030 crore at Rs 980 per share of Rs 10 face value, to acquire full control over Mindtree.
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