Demerger doubts pull down Larsen &Toubro

DALAL STREET SPIKES

Rumours of the company's demerger facing rough weather, pulled down the L&T counter down 3.32 per cent to close at Rs 555.70, ending off its day's low of Rs 530 on fresh buying at the lower levels.

Market players indicate that the news has created panic in the stock in early trades but buying at lower levels helped the stock recover marginally. More than 9.18 lakh shares were traded on the BSE.

Sources said that the market is punting in anticipation that the courts will not approve the L&T de-merger.

Creditors and equity shareholders of L&T had approved the de-merger of the cement division into a separate company. Shareholders had also approved a reduction in the share capital of the company following the demerger.