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Larsen & Toubro (L&T) today sold 4.85% stake in L&T Finance Holding for around Rs 600 crore through the offer for sale (OFS) route.
Following the share sale, L&T's holding in its diversified financial arm has come down from 81.5% to 76.65%.
L&T Finance's OFS of 83.26 million shares saw bids in excess of 100 million shares. As per exchange data, most of the bids came in at Rs 72.77 as against the floor price of Rs 70 fixed by the company. Credit Suisse Securities managed the share sale.
Shares of L&T Finance today ended at Rs 74.3, down 6.2% on the BSE. Shares of L&T, meanwhile, ended 2.5% higher at Rs 1,255.5.
The engineering and capital goods company will have further bring down its stake to at least 75% by August 2014 to meet the 25% public shareholding requirement.
As per norms, companies that make out with initial public offering (IPO) post 2010, were given three years to meet the 25% free float requirement. L&T Finance had came out with an IPO in August 2011 to raise over Rs 1,200 crore.
The deadline to meet the 25% public shareholding requirement for companies listed prior to 2010 ended in June 2013
