Singapore-based Nalanda Capital has increased its stake in IT services firm MindTree Ltd to 5.32% through open market purchases. The stake has been increased from 3.75% stake in September 2009, shows Bombay Stock Exchange (BSE) data. The estimated value of this stake, according to the Mindtree trading prices, is at Rs 37-38 crore.

Nalanda initially bought into Mindtree in February this year, buying a 2% stake from VC firm Walden International at a low price of Rs 212 per share. Since then it has kept on increasing the stake in Mindtree. Now the Bangalore-based company is trading at Rs 676, which values the 5.32% stake at Rs 136.72 crore.

Nalanda, a $400-million fund headed by former Warburg Pincus India MD Pulak Prasad, also bought stake in Aztecsoft earlier. MindTree acquired an 80% stake in Aztecsoft last year for around Rs 400 crore in one of the biggest deals in domestic IT space. 

The remaining shareholders were allotted two Mindtree shares for every 11 shares in Aztecsoft, a process that started in June. Some of the shares picked up by Nalanda in Mindtree may have been a part of that process.

Mindtree seems to be one of the favourite hunting grounds for PE investors. While Nalanda has continued to hold on to its stake, SAIF Partners, another PE firm which bought Mindtree stake around the same time, decided to sell its stake earlier making a 2x return. Early investors of Mindtree like Capital International and Walden International have also sold stake in the firm since the start of the market rally.  

MindTree reported revenue of $269 million for FY09 with a profit-after-tax (PAT) of $11.4 million.

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