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L&T drops amid Govt's stake-sale reports

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Capital Market
Last Updated : Nov 04 2016 | 11:47 AM IST

L&T lost 1.29% to Rs 1,425.90 at 11:22 IST on BSE on reports the government is offloading shares of the company via block deal mechanism on the stock exchanges today, 4 November 2016.

Meanwhile, the S&P BSE Sensex was down 99.34 points or 0.36% at 27,330.94.

Heavy volumes were witnessed on the counter. On BSE, so far shares were traded in the counter as against average daily volume of 71.51 lakh shares in the past two weeks. The stock hit a high of Rs 1,434 and a low of Rs 1,397 so far during the day. The stock had hit a 52-week high of Rs 1,615 on 27 July 2016. The stock had hit a 52-week low of Rs 1,016.60 on 12 February 2016. The stock had outperformed the market over the past one month till 3 November 2016, sliding 1.72% compared with 2.88% fall in the Sensex. The scrip had, however, underperformed the market in past one quarter, declining 2.25% as against Sensex's 0.96% fall.

The large-cap company has equity capital of Rs 186.47 crore. Face value per share is Rs 2.

Reports suggested that the government is selling stake in L&T via block deal mechanism on the stock exchanges today, 4 November 2016. As per reports, the government proposes to offload up to 3% stake in the company held under Specified Undertaking of the Unit Trust of India (Suuti). Reports added that the base price for the share sale has been set at Rs 1,415.66 per share, about 2% discount to the stock's closing price of Rs 1,444.55 on the BSE yesterday, 3 November 2016.

Suuti currently holds 8.14% stake in L&T as per the shareholding pattern as on 30 September 2016.

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L&T's consolidated net profit rose 45.5% to Rs 609.60 crore on 9.3% growth in net sales to Rs 21718.61 crore in Q1 June 2016 over Q1 June 2015.

L&T is a major Indian multinational engaged in technology, engineering, construction, manufacturing and financial services. It operates in more than 30 countries worldwide.

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First Published: Nov 04 2016 | 11:15 AM IST

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