June 10 -- Larsen & Toubro Ltd., India’s biggest engineering company, is offering to sell 10.3 million shares in UltraTech Cement Ltd., equivalent to an 8.3 percent stake, according to a person familiar with the transaction.
Mumbai-based Larsen & Toubro may offer the shares at 720 rupees to 735 rupees apiece, the person said, requesting anonymity since the plan is confidential. The stake would be valued at 7.57 billion rupees ($160 million) at the upper end of the range.
Larsen & Toubro, which owns 11.49 percent of UltraTech, may sell its remaining 4 million shares if there is demand, the person said. L&T shares, which have more than doubled since Jan. 1, gained 3.6 percent to 1,628.75 rupees in Mumbai.
UltraTech, which has also doubled this year, gained 4.2 percent to 762.8 rupees. UltraTech is 50.7 percent owned by the Aditya Birla Group’s Grasim Industries Ltd., according to the information posted on its Web site.
Grasim, which has doubled this year, rose 3.1 percent to 2,439.95 rupees at the close in Mumbai.
Citigroup Inc. is the sole arranger to the sale, the person said. Y.M. Deosthalee, chief financial officer at Larsen & Toubro, didn’t respond to calls made to his cell phone. Godwin Chellam, the spokesman for Citigroup’s local unit, declined to comment.
1 comment:
so what would b the inpact of the sale of stake on L&T....mean is it going to turn positive or negative for the stock
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