Larsen & Toubro Limited has purchased the entire stake held by Tamil Nadu Industrial Development Corporation Limited ('TIDC0') in L&T Shipbuilding Limited (LTSB), a subsidiary company, on April 10, 2019.
TIDCO held 3% stake in LTSB. The same has now been acquired by L&T, to make it a Wholly owned subsidiary. The consideration paid to acquire the stake was Rs. 32.74 crore.
L&T Shipbuilding was incorporated on November 13, 2007 and currently operates a modern shipyard from Kattupalli, Chennai carrying out shipbuilding and ship related activities. The company undertakes manufacture and building of Warships, Auxiliary Vessels / Crafts and Specialised Commercial Ships. In addition Kattupalli shipyard also undertakes Repairs and Refits of both Defence and Commercial ships.
The acquisition is not a related party transaction. This transaction is being done pursuant to exercise of a put option which TIDCO had on Larsen & Toubro Limited which is the Promoter of L&T Shipbuilding Limited as agreed with TIDCO at the time of inception of L&T Shipbuilding Limited. The transaction is done on an arms length basis.
Shares of LARSEN & TOUBRO LTD. was last trading in BSE at Rs.1369.85 as compared to the previous close of Rs. 1374.8. The total number of shares traded during the day was 309189 in over 3842 trades.
The stock hit an intraday high of Rs. 1382 and intraday low of 1365.2. The net turnover during the day was Rs. 425215636.