Mindtree dips 10% on resignation of 3 co-founders as L&T takes control

Mindtree shares dipped 10 per cent to Rs 781 in early morning trade on the BSE on Monday after three founders of the Bengaluru-based IT services company resigned following a change of control. The stock was trading close to its 52-week low price of Rs 753 touched on October 26, 2018 in intra-day deal.

Last week, Larsen & Toubro (L&T) was categorised as the IT firm's 'promoter' after the acquisition of 60.06 per cent in Mindtree.

In an exchange filing on Friday, Mindtree said its Executive Chairman Krishnakumar Natarajan, Executive Vice-Chairman and Chief Operating Officer (COO) N S Parthasarathy, and Managing Director and Chief Executive Officer (CEO) Rostow Ravanan had put in their papers as members of the board and as well as employees of the company.

They will stay as Board members till July 17, 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, the company said.

Earlier, Subroto Bagchi, another co-founder of Mindtree, had opted out of his reappointment on the board.

Meanwhile, the stock today turned ex-date for dividend of Rs 24 per share. The board of directors of Mindtree at their meeting held on April 17, had recommended a final dividend of 40 per cent (Rs 4 per equity share) for the financial year ended March 31, 2019 and a special dividend of 200 per cent (Rs 20 per share) to celebrate the twin achievements of exceeding USD 1 billion annual revenue milestone and 20th anniversary of the company.

At 10:36 am, the stock was down 9 per cent at Rs 786, as compared to a 1.2 per cent decline in the S&P BSE Sensex. A combined 2.23 million shares have changed hands on the counter on the BSE and NSE so far.

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