MindTree’s former chairman Soota halves stake in firm

MindTree’s former chairman Soota halves stake in firm

Mumbai: MindTree Ltd’s former chairman, Ashok Soota, who resigned from the company earlier this year, has halved his stake in the mid-sized IT firm by selling 5.5% stake in a block deal on Thursday, a spokeswoman at the firm said.

Shares of the Bangalore-based company, which the market values at $321.32 million, rallied as much as 19% to an intra-day high of Rs430 after the deal. The stock has lost 34% of its value in the past six months.

Soota, who originally held a 11.08% stake in MindTree, sold 2.2 million shares at Rs428 each.

The stake was sold to Global Technology Ventures, the spokeswoman said. Global Technology Ventures held 6.11% in MindTree, according to Reuters data.

In January, Soota, who had co-founded MindTree in August 1999 with nine other industry professionals, resigned citing personal reasons and said he would finalize plans for a new business venture shortly after his departure.

Soota’s exit had hit investor confidence with the shares plunging to over 17-month lows on the news, as MindTree had just undergone restructuring after shelving plans to launch a 3G smartphone based on Google’s Android platform in the US.