L&T Finance says deal to sell L&T Capital Markets (Middle East) terminated

The parties have mutually terminated the agreement on 2 July 2020 due to non-receipt of necessary regulatory approvals.

L&T Finance Holdings (LTFS) on Friday (3 July) said the agreement to sell its 100% stake in L&T Capital Markets (Middle East) to Proud Securities and Credits has been terminated as the buyer could not receive regulatory approvals to complete the transaction.

LTFS had executed the deal with Proud Securities and Credits in November 2019.

"In light of the non-receipt of necessary regulatory approvals sought by the purchaser, and in accordance with the terms of the agreement, we wish to inform you that the parties to the agreement have mutually terminated the agreement with effect from 2 July 2020," LTFS said in a statement.

Shares of L&T Finance Holdings declined 2.17% to Rs 67.70 on BSE on Friday, 3 July 2020.

On the technical front, the stock's RSI (relative strength index) stood at 56.473 on Friday, 3 July 2020. The RSI oscillates between zero and 100. Traditionally, the RSI is considered overbought when above 70 and oversold when below 30.

The stock was trading between its 50-day moving average (DMA) placed at 60.93 and its 200-day moving average (DMA) placed at 89.33.

L&T Finance Holdings' consolidated net profit skid 30.3% to Rs 384.86 crore on 1.3% rise in total income to Rs 3,427.22 crore in Q4 March 2020 over Q4 March 2019.

L&T Finance Holdings is a leading diversified non-banking financial company (NBFC).

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