L&T rose 2.01% to Rs 1683.65 at 14:52 IST on BSE after the company said that its wholly owned subsidiary has purchased 74% equity stake in Thales Software India, the Indian subsidiary of Thales.
The announcement was made during market hours today, 26 June 2014.
Meanwhile, the S&P BSE Sensex was down 153.30 points or 0.61% at 25,160.44.
On BSE, so far 1.56 lakh shares were traded in the counter as against average daily volume of 2.47 lakh shares in the past one quarter.
The stock hit a high of Rs 1,688 and a low of Rs 1,651 so far during the day. The stock hit record high of Rs 1774.70 on 9 June 2014. The stock hit a 52-week low of Rs 678.10 on 28 August 2013.
The stock had outperformed the market over the past one month till 25 June 2014, surging 9.19% compared with Sensex's 2.51% rise. The scrip had also outperformed the market in past one quarter, jumping 32.21% as against Sensex's 14.77% rise.
The large-cap company has equity capital of Rs 185.54 crore. Face value per share is Rs 2.
L&T's wholly owned subsidiary L&T Technology Services has purchased 74% of the equity capital of Thales Software India, the Indian subsidiary of Thales, the global technology leader in aerospace, transportation and defence and security markets, L&T and Thales said in a combined statement.
With this transaction, L&T Technology Services will now manage and oversee the management control, operations and delivery of services of the new joint venture, the statement said.
The joint venture brings together the strategic strengths of both the groups. By retaining 26% equity stake, Thales will help the company develop the latest trends in the avionics industry, one of its core businesses, the statement said. This collaboration adds to L&T Technology Services' growing competencies by enhancing its expertise in high-end avionic software, the statement added.
The joint venture capitalises on the existing strong relationship between the two groups, L&T and Thales and ensures a long term partnership in the engineering services domain. Furthermore, the transaction should enable Thales to select this new group as its Indian offset partner, resulting in inflow of offset related revenues in the joint venture, the statement said.
Dr Keshab Panda, Chief Executive, L&T Technology Services, expressed his confidence on this association: "This Joint Venture represents each organisation's strong commitment to provide customers with a single source of best services in avionics industry," he said. "We as an organisation are at an interesting phase of our journey where we are streamlining our expertise and strengthening our knowledge. In such a phase joining hands with Thales adds to our proficiency in the market," he added.
Commenting on the joint venture, Mr Eric Lenseigne, Managing Director of Thales in India said: "This JV is a reflection of our commitment to India and our objective to strengthen our industrial footprint in the country. In addition, this collaboration with L&T Technology Services brings on-board a seamless integration of all elements and assures our customers quality service and the highest level of long-term, local product support. We are sure that together we would build on our expertise and provide our customers with world-class technology and services."
L&T Technology Services is a wholly owned subsidiary of L&T with focus in the engineering services space, partnering with many of the Fortune 500 companies globally.
Thales is a global technology leader in the aerospace, transportation and defence & security markets.
L&T's net profit surged 52.3% to Rs 2723.48 crore on 11.1% growth in net sales to Rs 20079.10 crore in Q4 March 2014 over Q4 March 2013.
L&T is a $14.3 billion technology, engineering, construction, manufacturing and financial services conglomerate, with global operations.
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