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MindTree's former chairman halves stake in firm

business Updated: Jun 30, 2011 12:36 IST

Reuters
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MindTree Ltd's former chairman, Ashok Soota, who resigned from the company earlier this year, has halved his stake in the mid-sized IT firm by selling 5.5% stake in a block deal on Thursday, a spokeswoman at the firm said.

Shares of the Bangalore-based company, which the market values at $321.32 million, rallied as much as 19 percent to an intra-day high of 430 rupees after the deal. The stock has lost 34 percent of its value in the past six months.

Soota, who originally held a 11.08% stake in MindTree, sold 2.2 million shares at 428 rupees each.

The stake was sold to Global Technology Ventures, the spokeswoman said. Global Technology Ventures held 6.11 percent in MindTree, according to Reuters data.

In January, Soota, who had co-founded MindTree in August 1999 with nine other industry professionals, resigned citing personal reasons and said he would finalise plans for a new business venture shortly after his departure.

Soota's exit had hit investor confidence with the shares plunging to over 17-month lows on the news, as MindTree had just undergone restructuring after shelving plans to launch a 3G smartphone based on Google's Android platform in the US.