Mindtree plunges 11% as founders quit after L&T takeover

Shares of Mindtree plunged nearly 11 per cent in morning trade on Monday after company’s founders Krishnakumar Natarajan, Parthasarathy NS and Rostow Ravanan resigned from the board within 48 hours of L&T gaining control of the IT firm.

Chairman Natarajan, vice chairman Parthasarathy NS and chief executive Ravanan have quit the company, the firm said in a regulatory filing Friday.

The company said it will announce a new leadership team in due course.


Earlier this week, Mindtree had announced that L&T had acquired control of the company and had been categorised as a promoter with 60.06 per cent stake in the company. L&T held 9.87 crore equity shares in Mindtree as on July 2 following its recently-concluded open offer.

The founders had earlier opposed the L&T bid, terming it “hostile” and as a grave threat and value destructive to shareholders.

There were speculations in the market that founders too may sellout their holding in the open offer launched by the construction major but they continue to stay invested although they will no longer hold any board position, according to PTI.

The shares of the company closed 10.43 per cent lower at Rs 773.95 on BSE.