L&T gains on reports of company planning to list L&T Infotech by December 2015

Larsen & Toubro rose 1.69% to Rs 1,760.25 at 12:24 IST on BSE after the company's Chairman A M Naik was quoted by media as saying that the company will list its IT services unit L&T Infotech by December 2015.

Meanwhile, the BSE Sensex was up 78.44 points, or 0.28%, to 27,808.65

On BSE, so far 1.26 lakh shares were traded in the counter, compared with an average volume of 1.85 lakh shares in the past one quarter.

The stock hit a high of Rs 1,768 and a low of Rs 1,736.90 so far during the day. The stock hit a 52-week high of Rs 1,892.95 on 4 March 2015. The stock hit a 52-week low of Rs 1,400 on 8 October 2014.

The stock had outperformed the market over the past one month till 22 June 2015, rising 4.85% compared with 0.81% fall in the Sensex. The scrip had also outperformed the market in past one quarter, gaining 3.66% as against Sensex's 1.88% fall.

The large-cap company has equity capital of Rs 186.06 crore. Face value per share is Rs 2.

Larsen & Toubro (L&T)'s Chairman A M Naik was quoted by media as saying that the company, which has been looking to exit non-core businesses, will sell a 10% stake in L&T Infotech. L&T is planning to raise between Rs 1600-Rs 1800 crore from investors by diluting around 10-12% of the company, thereby eyeing a valuation of as much as $3 billion of L&T Infotech. L&T will also look at listing other businesses, including its hydrocarbons and transmission and distribution units over the next few years, A M Naik reportedly said.

As per reports, the listing of L&T Infotech is part of a bigger group restructuring drive that A M Naik has initiated as part of his unfinished agenda before retiring in 2017-18 to make the most complex corporate organization in India nimbler through decentralization. As part of it, while some verticals or subsidiaries like infotech will be listed in the Indian markets; some sub-optimal operations may get sold or opt for a JV route to get international expertise, reports indicated.

L&T during market hours today, 22 June 2015 said that the company's metallurgical and material handling business L&T Metallurgical and Material Handling (L&T-MMH) secured new orders worth Rs 1507 crore across various verticals. L&T-MMH is a brand of L&T.

L&T's consolidated net profit fell 27.1% to Rs 2069.64 crore on 2.9% rise in total income to Rs 28401.85 crore in Q4 March 2015 over Q4 March 2014.

L&T is a major Indian multinational engaged in technology, engineering, construction, manufacturing and financial services, with global operations. Its products and systems are marketed in over 30 countries worldwide.

Powered by Capital Market - Live News