Prabhakar Kini divests his stake to private investor

As Kinfotech divested 51 percent style="font-weight: normal;">
stake to privateinvestors,
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.

However, Kini has style="font-style: normal;">
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. I want to tell my detractors that 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. Coming to the issue of 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 in order to infuse some much needed 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.