Coffee Day Enterprises on Thursday said in a regulatory filing that the Income-Tax Department has released 74.9 lakh attached shares of IT firm Mindtree owned by the company and its promoter VG Siddhartha, but attached Siddhartha’s 46.01 lakh shares in Coffee Day Enterprises over potential tax demand.
Last month, the I-T Department had attached 74.9 lakh shares of Mindtree, of which 22.2 lakh shares belonged to Coffee Day Enterprises and 52.7 lakh shares belonged to its promoter Siddhartha.
In response to notices from the I-T Department, the promoter had filed the required revised returns and discharged all the tax liabilities along with the revised returns, said the Coffee Day filing.
The Cafe Coffee Day founder holds a 20.3 per cent stake in Mindtree through various entities. Apart from a 3.6 per cent stake in his personal capacity, Siddhartha holds 10.64 per cent through Coffee Day Enterprises and 6.45 per cent through Coffee Day Trading. He was one of the early investors in Mindtree, having bought a 6 per cent stake in 1999.
Potential stake sale
Industry watchers told BusinessLine the door is now open for people who want to pick up a stake in Mindtree.
Apart from KKR, L&T Infotech is said to be eying a majority stake in Mindtree. Suitors are reportedly looking for a total buyout though the founders are reluctant to sell their stakes. However, in a recent analyst call, Rostow Ravanan, CEO, Mindtree, said the founders are “committed” to the company’s future.