L&T sells 2.32% in Satyam for Rs 306 cr

Larsen & Toubro (L&T), one of the failed suitors for scam-hit Satyam Computer, today sold 2.32 per cent stake in the IT company (now Mahindra Satyam) for over Rs 306 crore, exactly a month after the lock-in perid on sale of its holding ended.

The engineering major, which still holds 4.58 per cent in Mahindra Satyam, informed the bourses that it has "divested over 2.72 crore shares in Mahindra Satyam on November 13, 2009."

The sale was for a consideration of Rs 306.54 crore, at a share price of Rs 112.52. The remaining stake held by L&T is currently worth over Rs 600 crore.

Shares of Satyam plunged 6.6 per cent to Rs 109.70, while L&T settled 0.17 per cent up at Rs 1,643.55 on the BSE today.

L&T was keen on acquiring the erstwhile Satyam Computer and had increased its stake in the IT company to 12 per cent in phases. It had acquired nearly 6 per cent in January for around Rs 206 crore.

However, it lost the bid to Tech Mahindra, which acquired 31 per cent stake the scam-hit Satyam Computer for Rs 1,756 crore. Satyam, which became embroiled in a financial fraud spawned by its founder Ramalinga Raju in January 2009, has since been rebranded as Mahindra Satyam by its new owner.

But L&T could not sell its stake immediately, as regulatory norms required it to hold the shares for at least six months since it was a potential suitor and was privy to confidential information. The lock-in period ended in October.

L&T's Rs 42 a share offer for Satyam was outbid by Tech Mahindra, which offered Rs 58 a share, and acquired 31 per cent in the IT company for Rs 1,756 crore in April.

After Mahindra Satyam's equity base expansion, post an open offer from Tech Mahindra, L&T's holding came down from around 12 per cent to the present 6.9 per cent.