Shares of Mindtree were down almost 2% at ₹869 apiece in today’s session so far as investors looked to V. G. Siddhartha, one of the company’s largest shareholders, and the management for the next move on control of the company. Siddhartha, founder of Café Coffee Day, is keen to sell his almost 21% stake in the company. The shares had touched a low of ₹856.65 earlier in the session.
Reportedly, the founders of the 20-year old company are against a strategic investor like L&T Technology Services, touted as one of the interested parties for Siddhartha’s stake, coming into the company. They are keen on management control, something they may have to cede in case a buyer like L&T comes in.
Private equity firm KKR is said to be the other suitor for the stake of Siddhartha, who holds it in his name and two of his other firms, namely Coffee Day Enterprises and Coffee Day Trading.
Promoter holding in the company is 13.32%. N.S. Parthasarathy, Subroto Bagchi and Krishnakumar Natarajan are founders of the company while Siddhartha isn’t classified as one, according to BSE filings.
The income tax department has attached a portion of Mindtree shares held by Siddhartha (5.27 million) and Coffee Day Enterprises (2.22 million) over a potential tax demand in an unrelated matter. The company’s equity base comprises 164.21 million shares.
In a notice to the BSE, Coffee Day said Siddhartha had discharged all tax liabilities and no more tax was due. It said a revised return had been filed and that necessary action would be taken to get the Mindtree shares released.