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Promoters of Micromax Informatics could offer a fair settlement package to its former Chairman Sanjay Kapoor in a bid to address his concerns over his unceremonious exit from the company.
According to top sources close to the company, the dispute between the promoters and Kapoor will get resolved soon. “It’s about the valuation of the stock that Kapoor held and a fair valuation will be arrived at,” the sources said.
A similar settlement was thrashed out between Micromax and its former CEO Deepak Mehrotra. While sources said that the settlement was offered two years after his exit, Mehrotra told BusinessLine that he had no outstanding issues with the company, “I am happy to confirm to you that I had amicable separation and settlement with Micromax and do not have any outstanding issues, including around ESOPs.”
Sanjay Kapoor had been forced out of the job on petty charges of inflated petrol bills. Kapoor has contested the allegations and has threatened legal action. The former chairman holds about 3-5 per cent stake in the company and reckons that his termination was timed to deny him stock options.
“I am entitled to ESOPs and other benefits. The valuation of the company has immensely increased due to my efforts. I have successfully got the commitment of huge investment in the company, the fruits of which the company has already started to reap,” Kapoor said in a letter addressed to Micromax board.
Kapoor and Micromax declined to comment on the dispute. Micromax had formally announced Kapoor’s exit on August 1. The exit was not surprising as the company founders and Kapoor could not agree on key business decisions.
Kapoor had plans to take the company global and bring in strategic investors, including Alibaba. Though the company is still in talks with multiple investors for a possible stake sale, the dispute with Kapoor may have dampened prospects to some extent.
In the letter to the company, Kapoor said that it was surprising that “no notice was ever issued to me or any explanation was ever called from me and the entire process has been undertaken with the predetermined outcome to terminate my services for a concocted cause.”
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