In order to purchase additional 31 percent stake in Mindtree, Larsen & Turbo (L&T) will be making an open offer at Rs 980 per share that is scheduled to begin on 14 May and close on 27 May.

In a public announcement to the shareholders of the Bengaluru-based IT company, L&T said that it will acquire 5.13 crore equity shares of Mindtree for a total consideration of Rs 5,030 crore.

Mindtree's committee of independent directors has up to 10 May to make any recommendations to shareholders on the open offer while L&T can increase offer price or change offer size by 13 May.

"The acquisition is expected to be value accreting for both the acquirer's shareholders and the target company's shareholders in the medium to long term," L&T said.

Further, following the board meeting on Tuesday, Mindtree in a statement said it has decided not to proceed with the buyback of equity shares of the company.

It has acquired 20.15 percent shares in Mindtree at the rate of Rs 980 apiece from V G Siddhartha (founder-owner of the Cafe Coffee Day chain) and intends to acquire 15 percent more from the open market. It has even made a purchase agreement with Axis Bank to execute the order.

The L&T management aims to get a controlling stake of 66 percent in Mindtree.

In an open offer, SEBI rules allow the board of directors of the target company to form a committee of independent directors to provide their reasonable recommendations on the offer to the shareholders.

Mindtree's management has been strongly arguing that the acquisition is not in the interest of the shareholders while L&T's management that is looking to expand its overall portfolio says its bid should not be seen as a "hostile acquisition."