Ashok Soota, former chairman and co-founder of IT consultancy services firm MindTree Ltd, has sold his remaining 3.5 per cent stake in the company to entrepreneur VG Siddhartha’s group holding company Coffee Day Resorts Pvt Ltd. Siddhartha, who has promoted India’s largest cafe chain Café Coffee Day (CCD), will see his group’s shareholding inching up to 17.81 per cent in MindTree, making him the single largest shareholder.
In a bulk deal on Monday, Coffee Day Resorts acquired 1.36 million shares or 3.35 per cent stake for Rs 64.6 crore. Coffee Day Resorts bought Soota’s shares at a premium – Monday’s deal was done at Rs 474.98 per unit, over 7 per cent premium to the closing price of Rs 441.95.
MindTree scrip was trading at Rs 442.55 on Tuesday at 11:49 am on the BSE, after hitting a high of Rs 450 in early trade.
Soota’s Happiest Minds Technologies Pvt Ltd, an IT solutions and services start-up, raised $45 million or Rs 229 crore in its led by Canaan Partners.
VG Siddhartha has been aggressively expanding his group’s business interests after roping in PE investors two years ago. In 2010, Kohlberg Kravis Roberts (KKR), New Silk Route and Standard Chartered Private Equity invested $200 million in Bangalore-based Coffee Day Resorts & Hotels Ltd.
The group, best known for its Café Coffee Day (CCD) chain, has since expanded into logistics (with Sical buyout) and furniture business under Daffco. It is also expanding its financial services business Way2Wealth, which was reportedly eyeing acquisition of an investment bank.
Siddhartha’s association with MindTree dates back over a decade or so, when he was the first investor in the company, along with venture capital firm Walden International. The Coffee Day Group currently holds 6.54 per cent through Global Technology Ventures Ltd while the rest is through Coffee Day Resort.
Other investors include Walden Software Investment (9.8 per cent) and Nalanda India Fund (9.75 per cent), besides the promoter group who collectively holds over 20 per cent stake.