To read this content please select one of the options below:

To tender or not: an investor’s dilemma in the first hostile takeover in Indian IT services industry

Mayank Joshipura (Department of Finance, School of Business Management, NMIMS University, Mumbai, India)
Vasant Sivaraman (Department of Strategy/Finance, S P Jain Institute of Management and Research, Mumbai, India)

Publication date: 8 December 2022


Learning outcomes

The learning outcomes of this study are as follows:1. Learn to analyze a hostile takeover bid from the perspectives of the acquirer, target firm’s management and a large institutional investor in the target firm.2. Review the structuring, financing, valuation, mode of consideration, legal and regulatory aspects of a hostile takeover.3. Understand the role of the target firm’s board in a hostile takeover transaction.4. Address “to sell or not to sell” dilemma of a large institutional investor in the target firm in the event of a tender offer given financial and non-financial considerations.

Case overview/synopsis

On June 14, 2019, Pulak Prasad, Founder and Chief Executive Officer (CEO) at Nalanda Capital, in consultation with other managing partners at Nalanda Capital, had to decide whether to tender a 10.6% equity holding in Mindtree Ltd. in an unsolicited open offer made by Larsen and Toubro (L&T) Ltd. Until then, Nalanda Capital, led by Prasad, had aligned with the Mindtree founders and had led a campaign to thwart L&T’s bid to acquire Mindtree; L&T’s offer to acquire 31% of Mindtree shares was because of open on June 17, 2019 and it is time for Prasad and the management team to take a reasoned call – whether to stay in Mindtree or to exit? Associated aspects included – What could be the consequences of not selling the stake? What could be L&T’s game plan? Could Mindtree continue to create wealth for its shareholders under L&T?

Complexity academic level

This case is appropriate for Mergers & Acquisitions and Strategic Financial Management courses in modules focused on structuring, financing and takeover defence techniques in a hostile takeover transaction. The case is appropriate for graduate MBA and EMBA programmes.

Supplementary materials

Teaching notes are available for educators only.

Subject code

CSS 1: Accounting and Finance.



Disclaimer. This case is written solely for educational purposes and is not intended to represent successful or unsuccessful managerial decision-making. The authors may have disguised names; financial and other recognizable information to protect confidentiality.


Joshipura, M. and Sivaraman, V. (2022), "To tender or not: an investor’s dilemma in the first hostile takeover in Indian IT services industry", , Vol. 12 No. 4.



Emerald Publishing Limited

Copyright © 2022, Emerald Publishing Limited

Related articles