Mindtree Stock Tank 11% After Top Leadership quits
IT firm Mindtree on Monday shed over 11 per cent on the BSE following resignations by the company's top leadership in the days succeeding infrastructure construction behemoth L&T's acquisition of controlling stake in the global IT services firm.
The Mindtree stock closed lower on Monday at Rs 768.60 a share, down 11.05 per cent, or by Rs 95.45, as investors reacted to resignations of the co-founders -- Krishnakumar Natarajan, N.S. Parthasarathy and Rostow Ravanan.
"Chairman Natarajan, Chief Operating Officer Parthasarathy and Chief Executive Ravanan have submitted resignations from the board of directors and as employees with effect from July 17 to ensure smooth transition," Mindtree said in a statement.
In a regulatory filing on Wednesday, Mindtree had said Larsen and Toubro (L&T) has acquired control of Mndtree with 60.06 per cent equity stake and was categorised as the promoter.
"The co-founders have asked the company to de-classify them as promoters along with the other founders, after their employment contracts lapse on July 17, for the transition," said the statement.
L&T had set its eyes on taking over Mindtree in a hostile bid after it purchased the 20.32 per cent stake of Cafe Coffee Day founder V.G. Siddhartha for Rs 3,300 crore on March 18.
The city-based engineering and construction conglomerate increased its holding with more shares from the open market and an open offer on May 14 for an additional 31 per cent stake at Rs 980 per share for Rs 5,030 crore to take full control of Mindtree.
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