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Mindtree slumps after key resignations

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Mindtree was down 10.87% to Rs 770.15 at 11:57 IST on the BSE after the company announced that its top executives quit.

The announcement was made after market hours on Friday, 5 July 2019.

Meanwhile, the S&P BSE Sensex was down by 552.82 points, or 1.40% to 38,960.57.

On the BSE, 1.54 lakh shares were traded in the counter so far compared with average daily volumes of 1.08 lakh shares in the past two weeks. The stock had hit a high of Rs 861 and a low of Rs 760 so far during the day. It hit a 52-week high of Rs 1181.90 on 11 September 2018 and a 52-week low of Rs 752.60 on 26 October 2019.

Mindtree is trading ex-dividend for a final dividend of Rs 4 per share and a special dividend of Rs 20 per share.

Mindtree announced that Krishnakumar Natarajan, executive chairman, N S Parthasarathy, executive vice chairman and chief operating officer and Rostow Ravanan, CEO and managing director have submitted their resignations as members of the board of directors of Mindtree and as employees of the company. They will stay as board members till 17 July 2019 and as employees in line with their employment contracts to ensure smooth transition. Further, along with the other founders of the company, they have asked the company to de-classify them as promoters under applicable laws.

Mindtree said that it will announce a new leadership team in due course.

L&T had initiated a hostile takeover of MindTree earlier this year and has since then expanded its shareholding to a majority stake through the recently-concluded open offer. L&T's shareholding in the IT firm now stands at 60.06% of the total paid-up equity share capital.

L&T announced that on 2 July 2019, it made payment of consideration to the shareholders of the Mindtree who tendered their shares in the open offer. L&T made an open offer to the shareholders of Mindtree to acquire up to 5.13 crore shares, or 31% equity, at Rs 980 per share. The offer opened on 17 June 2019 and closed on 28 June 2019.

On a consolidated basis, MindTree's net profit rose 8.9% to Rs 198.40 crore on a 25.6% rise in the net sales to Rs 1839.40 crore in Q4 March 2019 over Q3 December 2018.

MindTree is a global technology consulting and services company.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, July 08 2019. 11:58 IST