Bengaluru: Larsen - Toubro (L-T)s acquisition bid will be handled in such a way that it increases shareholder value, midtier IT services company Mindtree said, adding it would maintain industry-leading growth in the current financial year.The Bengaluru-headquartered IT services firms revenue crossed $1 billion in the previous fiscal year, two decades after it was founded.
The company aims to grow in the low-teens in FY20, the promoters said in its annual report.Towards the end of the financial year, we faced an unusual situation with L-T announcing an unsolicited bid to acquire majority equity control in Mindtree.
It may be a few weeks before we know how this finally shapes up.
We would like to reiterate our commitment to handling this issue in a manner that maximises value for all our stakeholders, Krishnakumar Natarajan, executive chairman, and Rostow Ravanan, CEO and managing director, wrote in a message to shareholders.Mindtree also said the new fiscal year comes with many exciting opportunities as well as a few challenges.Nonetheless, we are confident that we will maintain our trajectory of growing faster than our industry.
We estimate that we will deliver a low-teen growth rate in FY20, along with a margin expansion of 100-120 basis points, they wrote.On Thursday, the companys board approved three seats for L-T top executives CEO and MD SN Subrahmanyan, senior executive VP for its defence business JD Patil and chief financial officer Ramamurthi Shankar Raman effective July 16 .
Mindtree co-founder Subroto Bagchi, who did not wish to continue as non-executive director in view of L-T getting three board seats, had earlier sought reappointment, according to the annual report.