In the stock market and in the corporate world, people become amused when the wealth of people quadruples several times. One such businessman, VG Siddhartha, the founder of Cafe Coffee Day (CCD), has increased his wealth nearly four times in eight years. In just a span of eight years, his investment in Mind Tree has made him earn Rs 2,858 crore. VG Siddhartha invested about Rs 436 crores in Mind Tree.
In March 2019, Larsen & Toubro (L & T) bought Siddhartha’s 20.41 percent stake in Mind Tree for Rs 3,269 crore. Eight years ago, Siddhartha purchased these shares of Mind Tree for just Rs 436 crores. In the meantime, in the year 2012, 2.5 lakh shares were sold at Rs 122.33 per share and 25.52 crore rupees were received by him. After this, he again sold 250 shares in the year 2018 for 864 rupees and received 2.16 lakh rupees. According to information given to BSE, Siddhartha has sold his stake for Rs 3,269 crore. In this way, he has made a huge profit of Rs 2,858.74 crore by selling his stake of Mind Tree.
In March 2012, Siddhartha increased his stake in Mind Tree to 11.26 percent and then in June 2012, buying 3.27 percent stake and increasing it to 14.53 percent. After this, he again increased his stake in the year 2016, 2017 and 2018, after which his total share was 20.41 percent. VG Siddhartha got a tremendous profit of 1,020 percent (ROI) on this initial investment.
Actually, L & T wants to take hostile on Mind Tree and that is why the company is aggressively buying its shares. With the plan to acquire at least 51 percent stake in the company, L & T has bought the stake from VG Siddhartha. Not only that, in these eight years, Siddhartha has received Rs 180 crore as dividend from investment in Mind Tree.
10 professionals from an IT industry started Mind tree company with two initial investment of $ 16 million (Rs 11.20 crore), not just money but for a few different and special purposes, which now becomes a company of Rs 15,000 crore. In the establishment, employees of companies like Wipro, Lucent and Cambridge Technologies Partners played a key role in the expansion of Mind tree.
