L&T gains after divesting E&A business

Larsen & Toubro was up 1% to Rs 1414.50 at 9:34 IST on BSE after the company signed agreements with Schneider Electric to divest electrical & automation business for Rs 14000 crore.

The announcement was made on 1 May 2018.

Meanwhile, the S&P BSE Sensex was up 72.20 points, or 0.21% to 35,232.56.

On the BSE, 52,000 shares were traded in the counter so far compared with average daily volumes of 1.40 lakh shares in the past two weeks. The stock had hit a high of Rs 1,424.50 and a low of Rs 1,402 so far during the day. The stock hit a record high of Rs 1,469.60 on 1 February 2018. The stock hit a 52-week low of Rs 1,108.12 on 30 June 2017.

Larsen & Toubro, India's leading engineering, technology and construction conglomerate, signed, subject to regulatory approvals, definitive agreements with Schneider Electric, a global player in energy management and automation for strategic divestment of L&T's Electrical and Automation (E&A) business for an all-cash consideration of Rs 14000 crore.

L&T's E&A business offers a wide range of low and medium voltage switchgear, electrical systems, marine switchgear, industrial and building automation solutions, energy management systems and metering solutions. Its manufacturing facilities are located at Navi Mumbai, Ahmednagar, Vadodara, Coimbatore and Mysore in India as well as in Saudi Arabia, UAE (Jebel Ali, Dubai), Kuwait, Malaysia, Indonesia, and the UK. Over the years, the E&A business has built strong research and development capabilities and has a wide network of channel partners across India and international markets.

The E&A business reported net revenue of Rs 5038 crore during FY 2016-2017.

L&T's consolidated net profit surged 48.4% to Rs 1617.88 crore on 10.1% growth in net sales to Rs 28747.45 crore in Q3 December 2017 over Q3 December 2016.

Larsen & Toubro is an Indian multinational engaged in technology, engineering, construction, manufacturing and financial services.

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