L&T acquires controlling stake over MindTree

L&T seems to have succeeded in acquiring controlling stakes in MindTree, according to media reports. The new development that has come to light suggests that Nalanda Capital, the biggest institutional shareholder in Mindtree, has tendered its full holding of 10.6 percent, says a report on money control quoting sources with knowledge on the matter.

Ever since L&T announced its intent to acquire significant interest in Mindtree, in an all-cash transaction, Subroto Bagchi compared the takeover to the likes of a ‘tree’ being chopped down by ‘bulldozers and chain saws’ to be replaced with a ‘shopping mall’.

“KK, Rostow, Partha and I will be the first line of defence on behalf of all Mindtree. I will be meeting each one of you at every Mindtree location in the coming days to answer any question you may have. Meanwhile, stay the course. Remember, you hold the Tree,” said Bagchi in his open letter.

Bagchi had also tweeted saying “Mindtree has not been designed as an “asset” to be bought & sold. It is a national resource. It has a unique culture that humanizes the idea of business. It sets the standards of corporate governance.” The company had a total of 20,000 employees as of January 2019, of which 31% are women.

Its workforce consists of employees representing 65 nationalities working from various offices across the globe. Out of its total workforce, 93% are software professionals and remaining 7% work for support and sales.

The company also has a philanthropic arm called MindTree Foundation that works in the pursuit of better living for people with disabilities and enhancement in the quality of primary education. Mindtree Foundation was incorporated on 20 November 2007 under section 25 of Companies Act. Mindtree’s employees, assistive technologies and NGOs collectively work towards achieving this goal.