Singapore-based Nalanda Capital has bought nearly a 2% stake in IT services firm MindTree Ltd from venture capital firm Walden International. The stake has been bought for Rs 15.6 crore through an open market bulk deal on the Bombay Stock Exchange. The stake has been picked up for nearly Rs 16 crore. Walden still continues to hold about 15.8% stake in MindTree.
The venture capital firm invested Rs. 23.68 crore in MindTree at Rs 41 per share. This was during MindTree's first round in 2000, in which the firms raised $9.1 million. Walden also participated in second round in 2001, in which the Bangalore-based IT firm raised $14 million.
MindTree is one of India's most successful IT companies backed by venture capitalists. Apart from Walden, it has raised funds from Capital Group, Franklin Templeton and Sivan Securities. The firm was set up in 1999 by 10 IT professionals from Cambridge Technology Partners, Lucent Technologies and Wipro and was headed by Ashok Soota, former vice president of Wipro. MindTree acquired mid-tier outsourcing product development (OPD) and testing player, Aztecsoft, for around Rs 400 crore, in one of the biggest deals in the domestic IT space.
Walden has sold the 2% stake at Rs 212 per share, which is relatively low to MindTree's 52-week high of Rs 506. The VC is presently raising a $500 million global venture capital fund, from which it plans to invest in India. Walden has also invested in second generation outsourcing firm Anantara Solutions, formed by former Satyam employees, along with Helion Ventures and Silicon Valley Bank.
Nalanda Capital has $400 million fund with a mandate to invest in listed Indian companies only. The fund is headed by Pulak Prasad, who was managing director with Warburg Pincus in India earlier, and went on to set up his own fund couple of years ago. In December, Nalanda had picked up a stake in Kalanidhi Maran's Sun TV Network Ltd for a little more than Rs 100 crore. It has picked up stakes in more than half a dozen listed companies such as Mastek, Triveni Engineering, Page Industries etc.