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Mindtree shares plunge 12% as 3 co-founders resign after L&T takes control

The stock price of Mindtree fell 12% to day's low after the company announced on Friday that its executive chairman Krishnakumar Natarajan, executive vice chairman & chief operating officer (COO) N S Parthasarathy, and managing director & chief executive officer Rostow Ravanan submitted their resignations as board members as well as employees of the company.

twitter-logo BusinessToday.In        Last Updated: July 8, 2019  | 16:52 IST
Mindtree shares plunge 12% as 3 co-founders resign after L&T takes control
The firm will announce a new leadership team in due course, it added.

The stock price of Mindtree fell 12% to day's low after the company announced on Friday that its executive chairman Krishnakumar Natarajan, executive vice chairman & chief operating officer (COO) N S Parthasarathy, and managing director & chief executive officer Rostow Ravanan submitted their resignations as board members as well as employees of the company.

The stock price of Mindtree opened at a loss of 3.05% to Rs 861 against the previous close of Rs 864.05 and later fell further to Rs 760 on BSE, down by 12%. The Mindtree stock has fallen 15.26% in the past 4 consecutive days.

Mindtree stock today traded mere 2.76% away from 52-week low of Rs 752.60. Mindtree stock ended the day at Rs 773.95, down by 95 points on BSE and at Rs 772 on NSE, at a loss of 92 points.

Overall 1.3 lakh shares and 37.5 lakh shares are currently changing hands on BSE and NSe, respectively.

With 60% stake, Larsen & Toubro becomes promoter of Mindtree

In a filing submitted on Friday with the subject line ' Leadership changes in Mindtree following change of control', the global technology services and Digital transformation company, informed the bourses that the 3 co-founders have passed their resignations and further asked the company to de-classify them as promoters under applicable laws.

BT Buzz: As L&T acquires 60%, what lies ahead for Mindtree and its founders

Additionally, the filing quoted Krishnakumar Natarajan, Executive Chairman, Mindtree that, "Mindtree has delivered exceptional performance for all our stakeholders over the last 2 decades through our differentiated strategy and unique culture.  We are grateful to all our customers, Mindtree Minds and external  stakeholders  for  their  steadfast  support  throughout  our  journey". "We wish the new leadership team at Mindtree the very best", he further added.

End of an era! 3 Mindtree co-founders resign as L&T takes control

The firm will announce a new leadership team in due course, it added. On July 3, Mindtree announced that has Larsen & Toubro (L&T) was categorised as the IT firm's 'promoter' after the acquisition of 60.06 per cent in Mindtree.

Edited by Rupa Burman Roy

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