Cafe Coffee Day founder considering selling stake in Mindtree: Report

Growth of Cafe Coffee Day in india (Image: Reuters)

Mindtree investor VG Siddhartha is considering selling 5-10 percent of his stake in the mid-sized IT firm, according to a news report.

The founder of Café Coffee Day Ltd holds one-fifth of the equity in Mindtree Ltd, and had stepped down as an independent director in March. The move had led to speculation that he might want to cash out his investments in Mindtree.

According to a report by CNBC-TV18, Siddhartha is considering monetising a part of his holdings in Mindtree at current levels.

Mindtree and Siddhartha declined to comment when contacted by Moneycontrol.

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

Mindtree has consistently denied any plans of stake sale by Siddhartha, who has himself also denied any such possibility in the past.

Stake sale refers to a company selling its equity holding in a particular company to another company and often benefit.