Founders may sell Mindtree stake to NEC Corp, PE firm
MUMBAI: Japan’s NEC Corp. and a large global private equity fund are in initial talks to acquire a controlling stake in Mindtree Ltd from its founders, two people directly aware of the development said.
The founders of the software services provider are in talks to sell their entire stake in the company, the people said on condition of anonymity. Together, Mindtree’s promoters own 13.35% stake valued at ₹2,087.15 crore at current stock price. The rest of the company remains with the public, according to Mindtree’s latest exchange filings.
For mid-sized companies such as Mindtree, having the backing of a strong parent will help it win bigger deals in the age of artificial intelligence, automation of processes and digital services at a time traditional IT services are being increasingly commoditized.
“Globally IT industry is seeing rapid transformation and large investors are often better than placed than founders to integrate product offerings,” said Bimal Raj, partner Singhi Advisors, a Mumbai-based investment bank.
A Mindtree spokesperson declined to comment as it is in a so-called silent period before the company’s quarterly earnings are announced. “There is, however, no certainty of a deal,” said the first person, requesting anonymity. “The promoters have been in exploratory talks with several potential suitors for over a year now.” MUMBAI: In a major blow to the promoters of Uttam Galva Steel, the Mumbai bench of the National Company Law Tribunal (NCLT) has admitted the insolvency plea filed by the State Bank of India (SBI) against Uttam Value Steel Ltd, a listed subsidiary of the Uttam Galva.
On Tuesday, the presiding officer of NCLT’S Mumbai bench, MK Shrawat had admitted the insolvency petition as well as approved the appointment of Rajiv Chakraborty as interim resolution professional (IRP). While the tribunal has reserved its order in the bankruptcy plea against another subsidiary Uttam Galva Metallics on July 11.
Uttam Value Steel and Uttam Galva Metallics owe banks ₹3,200 crore and ₹2,200 crore, respectively.
Country’s largest lender, SBI had approached the dedicated bankruptcy court after Uttam Value Steel had defaulted on ₹334 crore.