3 Mindtree co-founders quit after L&T buys controlling stake

Bengaluru (IANS) Mindtree co-founders Krishnakumar Natarajan, N.S. Parthasarathy and Rostow Ravanan resigned on Friday, two days after infrastructure construction behemoth L&T acquired controlling stake in the global IT services firm.

"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," said the city-based firm in a statement here.

In a regulatory filing on Wednesday, Mindtree said the Mumbai-based Larson and Toubro (L&T) Ltd had acquired its control 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.

The 20-year-old company will announce a new leadership team in due course.

"L&T held 9.87 crore equity shares in Mindtree as on July 2 following its recently-concluded open offer," said the filing.

L&T on Tuesday said it paid to investors who sold their shares to in the open offer that closed on June 28.

It had set its eyes on taking over Mindtree in a hostile bid after it purchased 20.32 per cent stake of The Coffee Day founder V.G. Siddhartha for Rs 3,300 crore on March 18, increased its holding with more shares from the open market and an open offer on May 14 for an additional 31 per cent stake for Rs 5,030 crore at Rs 980 per share of Rs 10 face value to have full control over it. 

"The object and purpose of acquiring a controlling stake in Mindtree is aligned with our strategy to grow the revenue and profit of asset light services, business portfolio, thereby increasing the consolidated return on equity and diversifying the group revenue and profit into the IT services areas," L&T had said in a statement earlier.