Abstract
After twenty years of successful running of their company, Mindtree co-promoters had to exit their company as it was acquired by conglomerate L&T. A passive investor in the firm, V G Siddhartha had to sell his 20% stake, to clear heavy debts of his core business. As the promoters of Mindtree were not in a position to raise the finances to buy off his stake, he approached L&T, which bought his shares. L&T went on to acquire additional stake in Mindtree from the open market and from FIs. The three co-promoters in senior positions at Mindtree, along with another co-promoter Subroto Bagchi tried to fend off the unwelcomed acquirer, but in vain. Without a controlling stake in the firm and resources to buy off the largest individual shareholder, Mindtree co-promoters had to exit and face the harsh reality of the new owner L&T being classified as the promoter of the firm. The original promoters of Mindtree had set up and scaled into a global IT services company.
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