Shares of Mindtree extended their gains into sixth straight trading day, up 1 per cent to hit a fresh record high of Rs 1,277 on the BSE on Thursday. Thus far in the current week, the stock of the leading digital transformation and technology services company has soared 8 per cent after former promoters Krishnakumar Natarajan and Subroto Bagchi sold equity shares worth more than Rs 200 crore via open market.
Krishnakumar Natarajan sold 1.7 million equity shares, amounting to Rs 207 crore, on September 14, 2020 through open market, Mindtree said via a disclosure to the stock exchanges. The company said Subroto Bagchi, too, sold 264,154 shares worth of Rs 32.84 crore on Monday. The name of the buyers could not be ascertained immediately.
N Krishnakumar held 6.05 million (3.68 per cent stake), while Subroto Bagchi held 4.69 million (2.85 per cent stake) in Mindtree at the end of June 2020 quarter, the shareholding pattern data show.
On July 28, Mindtree had submitted the applications seeking reclassification of the Promoters and Promoter Group including Krishnakumar Natarajan and Subroto Bagchi to "Public" category.
"Born digital" in 1999 and now a Larsen & Toubro Group Company, Mindtree applies its deep domain knowledge to 290+ enterprise client engagements to break down silos, make sense of digital complexity and bring new initiatives to market faster.
Meanwhile, the management expects demand for digital transformational services from our customers to increase as they invest into data, cloud-enabled solutions, and customer-centric and end-user experience. In current financial year 2020-21 (FY21), Mindtree expect softness in overall revenue in H1 due to a drop in demand, curtailment of discretionary spends and cost-optimization pressure within customers’ business.
"The company is now part of the $21 Billion Larsen & Toubro conglomerate, deriving synergies to grow faster and winning bigger deals. The company will continue co-selling with long-standing strategic partners to increase the top-line. Accordingly, the management expect the top-line recovery to fructify during the second half of FY21," Mindtree said in 2019-20 annual report.
The company's balance sheet remains robust with cash and investments of Rs 1,362 crore as on March 31, 2020 and good cash flow visibility for FY21, it said.