L&T to acquire L&T Shipbuilding

Larsen & Toubro Limited is all set to acquire L&T Shipbuilding Limited. The target company has a turnover of Rs. 73,088.79 lakh. It also has a negative networth of Rs. 80,914.97 lakh as on March 31, 2018.

The acquisition is the result of the exercise of a put option which TIDCO had on L&T Ltd. TIDCO is the promoter of L&T Shipbuilding Ltd. The transaction, which is not a related party transaction, is done on an arm’s length basis.

Initially, TIDCO held 3 per cent stake in L&T Shipbuilding. The same has now been acquired by L&T, thereby making it a wholly-owned subsidiary.

The cost of the acquisition which was completed on April 10, 2019 came up to Rs. 32.74 crore in cash. The company acquired a total of 1,33,20,000 shares aggregating to 3 per cent of the shareholding.

On Thursday, the shares of L&T opened at Rs. 1,371.50 and hit a high and low of Rs. 1,386.50 and Rs. 1,371.50, respectively. At 11:04 am, the stock was trading at Rs. 1,384.90, up 1.10 per cent.