Suitors eyeing a stake in Mindtree are looking at a total buyout through the open route, even as founders of the mid-sized company are reluctant to sell.

This comes against the backdrop of earlier reports that L&T Infotech is eyeing the stake of one of the largest shareholders in the company — VG Siddhartha. The Cafe Coffee Day founder holds 20.3 per cent in Mindtree through various entities. Apart from a direct 3.6 per cent stake, Siddhartha holds 10.64 per cent through Coffee Day Enterprises and 6.45 per cent through Coffee Day Trading.

Siddhartha, as BusinessLine had earlier reported, was in talks with private equity firms like KKR. However, industry sources that BusinessLine spoke to said that L&T Infotech has evinced a keen interest in buying not just the stake of Siddhartha but also those of the founders who together hold around 40 per cent in Mindtree.

According to a source close to the development, the issue of Siddhartrha’s stake sale came up in the board meeting. “The kind of premium that L&T Infotech, KKR or one of the private equity firms which had also evinced interest would pay came up for discussion,” said a source. An email sent to L&T Infotech did not elicit a response.

Market watchers opine that Siddhartha is keen to exit but potential suitors are interested in taking a majority stake in Mindtree and not just the 20-odd per cent that he holds.

“The remaining founders do not want to sell as they feel emotionally closer to the company and as they are in their sunset years,” said a source who is aware of the talks. This, sources say, can be done by acquiring Siddhartha’s stake and the remaining 5.7 per cent stake through the open market.

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