Mindtree Shares Plunge 14% as Top Management Resigns After L&T Acquires Controlling Stake

Mindtree Ltd shares nosedived as most as 14.6% in intraday trade on Friday, i.e. 8 July, as a tip government quiescent after Larsen and Toubro Ltd (LT) acquired a determining seductiveness in a company.

Mindtree’s tip coronet — Krishnakumar Natarajan, N.S. Parthasarathy and Rostow Ravanan — submitted their resignations as house of directors and employees of a association after infrastructure vital LT acquired some-more than 60% seductiveness in a IT organisation final week.

“Krishnakumar Natarajan, executive chairman, N.S. Parthasarathy, executive clamp authority and arch handling officer, and Rostow Ravanan, CEO and handling director, have submitted their resignations as members of a house of directors and as employees of a company,” Mindtree pronounced in a BSE filing on 5 July.

Mindtree combined that a 3 will stay as house members and employees compartment 17 Jul in line with their practice contracts to safeguard a well-spoken transition. “Further, along with a other founders of a company, they have asked a association to de-classify them as promoters underneath germane laws,” it said.

Mindtree pronounced it would announce a new care group in due course.

Last week, LT was means to acquire a infancy 60% seductiveness in Mindtree after a open offer to buy 31% shares got oversubscribed. The association had bought 20.32% shares in Mindtree from V G Siddhartha and his Coffee Day Enterprises for over Rs 3,000 crore in Mar and subsequently done an open offer to buy an additional 31% stake.

The growth came within months of Mindtree rejecting a antagonistic takeover bid from LT, observant that it will not be in a seductiveness of a association or a shareholders.

At 1.33 pm, shares of Mindtree were trade during Rs 772 apiece, down 13%, on a National Stock Exchange (NSE). LT shares were, meanwhile, trade down 4.2% during Rs 1,493 apiece.