Mindtree's Subroto Bagchi to retire next month, L&T grabs 3 seats on its board
As L&T soon takes over the Indian multinational, Mindtree Ltd, it secures three board positions at the IT services firm.
In a BSE filing, Mindtree revealed that L&T CEO and MD S N Subrahmanyan will join its Board as Non-Executive Director with effect from 16th July, when Mindtree is also scheduled to hold its annual general meeting.
Further, the Nomination and Remuneration Committee and the Board of Directors of Mindtree have also approved and recommended two more appointments. Jayant Damodar Patil and Ramamurthi Shankar Raman might joins as non-executive directors. However, it depends on the shareholders' approval at Mindtree's AGM.
At the same AGM, the Co-Founder and Chairman of IT services firm, Subroto Bagchi retires by rotation. He is likely to step down as he has not offered himself for re-appointment.
Earlier, in March, Bagchi had resigned as the head of Odisha's Skill Development Authority an to return to Mindtree. It was in the same month, that the construction major, L&T showed its interest in Mindtree and commenced the India's first-ever hostile takeover bid in the IT space.
At that time, L&T had said it will buy 20.32 percent stake in Mindtree from V G Siddhartha and his coffee enterprise for over Rs 3,000 crore.
Now, after steadily increased its holding in the company, L&T is eyeing about 66 per cent stake in Mindtree for over Rs 10,700 crore.
This hostile takeover will surely follow a lot of leadership changes and soon impact the entire staff of Mindtree as well.
Amidst the changes that the IT firm is about to go through, how the Co-Founders maintain their position and voice on the board will be crucial.
At the end of March 2019, Mindtree had eight members on its board, including co-founders Rostow Ravanan (CEO-MD), Krishnakumar Natarajan (Chairman) and NS Parthasarathy (Executive Director).
There is no clarity on how the leadership of these members is about to get affected. With Bagchi retired from the board, the responsibility of ensuring a smooth transition as L&T takes over will be on the remaining founding and board members of Mindtree.
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