Prabhakar Kini Divests 51% Stake In Kinfotech

As Kinfotech divested 51 percent stake to private investors, there has been a
lot of buzz mostly speculative in nature surrounding the investment. For
instance, it has been said Prabhakar Kini, MD, Kinfotech, took this step because
his son who was also working with Kinfotech walked out to work with Wipro last
year. Further, due to the mess related to software taxes and health issues, it
is rumored that Kini wanted to move out of the business.

Kini has quashed these rumors circulated in the market. "I heard about this
from my employees. My competitors are spreading wrong information to ruin my
business. But such tactics will not have a positive effect on customer trust. No
one is panicking be it our employees or management. Kinfotech is a debt-free
company and is rapidly growing its business," he said.

Kini reveled, "My son left Kinfotech eight years back and not a year back as
some claim. There is no issue between the two of us. Regarding, software taxes,
I wish to clarify that while we initially did have issues with service tax and
TDS (tax deducted at source), now we do not have any such matters to deal with.
I also wish to affirm to everyone concerned that at the age of 71, I am hale and
hearty and doing well health wise."

As a result of the deal, there is no change in Kinfotech's management except
that the private investor is now on the company's Board of Members as a part
time Director. "The deal is being made to infuse some capital in the company. We
are currently a Rs 30 crore company and for achieving our target of Rs 100 crore
in the next three years, we needed a capital investor willing to put his money
in the company," said Kini while refraining from naming the private investor.

DQC News Bureau