L&T likely to sell Mahindra Satyam stake with expiry of lock-in
07 October 2009
Larsen and Toubro (L&T) may likely sell its 6.9 per cent stake in Mahindra Satyam, the new identity of scan tainted Satyam Computer Services, at the expiry of a lock-in period next week.
One of the bidders for the take over of Satyam, L&T's stake was put in a lock-in period after the company was taken over by Tech Mahindra. It may garner a profit of Rs250 crore from the stake sale, according to its chairman AM Naik. (See: L&T expects Rs250 crore profit from Satyam stake sale)
The company had earlier sought permission to sell its holdings but refrained from further initiative with the nearing of the lock-in expiry.
Out of 1.17 billion shares of Mahindra Satyam, L&T holds 81.13 million shares. Its total holding as per Tuesday's prices was reported to be around Rs927 crore.
According to some sources, L&T's financial department is studying the tax liabilities and would go ahead with the sale at a suitable time to book profits.
The six month lock-in period had been put in place as L&T was privy to confidential financial information belonging to Satyam.
L&T is one of India's largest engineering and construction firms with an estimated equity capital of Rs117.53 crore. Its construction division has recently bagged new contracts worth Rs1,513 crore.
The share prices of L&T were last trading at Rs1,704, higher by 1.29 per cent.