CCD founder VG Siddhartha may offload his stake in information technology major Mindtree, a news report says.
As the largest investor in Mindtree, Sidhartha controls about 26 per cent shares through companies including Coffee Day Enterprises and Coffee Day Trading.
Private equity firm KKR has evinced interest in picking up a major stake in Mindtree, the report says quoting sources in the company.
Siddhartha had stepped down as an independent director in March, triggering speculation that he might cash out on his investments. Market observers say Siddhartha might be in need of the funds for further expansion of CCD.
Shares of MindTree were trading at Rs 860 at 12 noon on NSE down from its previous close of Rs 902. The Coffee Day Enterprise was trading at Rs 268, up 1.63 per cent from the previous close.
"Mindtree is in talks with several large potential investment firms, including KKR," Livemint website quoted a source as saying.
The website reported in June that NEC Corp of Japan and a large global private equity fund were in initial talks to acquire a controlling stake in Mindtree.
There have been reports that the promoter group of the company, including its co-founders such as Krishnakumar N. (3.72 per cent stake), Subroto Bagchi (3.11 per cent), N.S. Parthasarathy (1.43 per cent) and Rostow Ravanan (0.71 per cent) have not been looking to sell their stakes.
"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. At Mindtree, we are not privy to the plans of these investors and hence cannot offer any comments on it," Livemint said quoting an email of Krishnakumar, Mindtree chairman.
Krishnakumar also informed the portal that the company was currently not in the process of appointing a banker.
Estimates show that the 1999-founded Mindtree with offices in Bengaluru and New Jersey and employing about 19,000 people saw a 4.3 per cent rise in revenue to Rs 5,463 crore FY2018 with the net profit rising by 36 per cent to Rs 570 crore.
