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Published: Sun, November 06, 2016
Economy | By Melissa Porter

Govt sells 1.63% stake in L&T

Govt sells 1.63% stake in L&T

In a disclosure to the exchanges, the Administrator of the SUUTI revealed that has it sold 1.482 crore shares, representing 1.62 per cent of the paid-up capital of L&T.

Share price of L&T fell 1.3% at 1026 hours on BSE Sensex, at Rs 1426.10 per share. According to the NSE, State Bank of India bought 56.55 lakh shares, at an average price of ₹1,415.58. After years of deliberations, the government had finally chose to offload up to 3% stake in L&T for almost Rs 4,000 crore through block deals.

On the NSE, the scrip ended at Rs 1,418.50.

SUUTI, which was created to take over part of the assets and liabilities of the now-defunct Unit Trust of India, held 8.16 per cent stake in L&T. The current market cap of the company is Rs 134680.34 crore.

Following the stake sale, the Centre holding in the company will come down to 6.69 per cent stake (or 6.11 crore shares) from the current 8.32 per cent.

In September this year, the finance ministry invited 12 bankers seeking proposals for the sale of securities held by SUUTI.

This was the first block deal by SUUTI, which owns stakes in companies including Axis Bank Ltd and ITC Ltd.

Insurance companies have a shareholding of 20 per cent, of which the Life Insurance Corporation has 16.04 per cent, while the rest is with the General Insurance Corporation.

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