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Last Updated : Dec 06, 2018 02:01 PM IST | Source: Moneycontrol.com

VG Siddhartha, others to sell stakes in Mindtree; KKR may step in: Report

The promoters of the company including its co-founders Krishnakumar N, Subroto Bagchi, NS Parthasarathy, Rostow Ravanan are not looking to sell their stakes

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Mindtree's largest investor VG Siddhartha and other key investors are planning to sell their stakes in the Bengaluru-based software services company, Mint reported.

In March, Siddhartha, also the founder of Café Coffee Day (CCD), had stepped down as an independent director. The move had led to speculation that he might want to cash out his investments in Mindtree.

The coffee group billionaire holds a 3.6 percent stake in Mindtree, 6.31 percent through Coffee Day Trading and 10.39 percent through Coffee Day Enterprises, taking his overall stake to 20.3 percent.

According to the report, private equity firm KKR has envisaged interest in acquiring a large stake in Mindtree, a source told the paper.

Moneycontrol could not independently verify the report.

"Mindtree is in talks with several large potential investment firms, including KKR," another source told the paper.

Mindtree has been discussing a stake sale for the past five months. In June, Japan’s NEC Corp and a ‘large global private equity fund’ were in talks to buy a controlling stake the IT software services company.

Mindtree promoters including its co-founders Krishnakumar N, who holds a 3.72 percent stake, Subroto Bagchi (3.11 percent), NS Parthasarathy (1.43 percent) and Rostow Ravanan (0.71 percent) are not looking to sell their stake, the report said.

"We have several marquee financial investors who, over a long period of time, have helped build Mindtree into a highly valued institution. As with all financial investors, they have the prerogative to monetise their stake based on their individual priorities. As Mindtree, we are not privy to the plans of these investors and hence cannot offer any comment on it," Mindtree Chairman Krishnakumar said.

Mindtree, which was set-up in 1999, saw a 4.3 percent increase in revenue to Rs 5,463 crore in FY18 and reported a 36 percent jump in its net profit to Rs 570 crore.
First Published on Dec 6, 2018 02:01 pm
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