L&T acquires Tidco's 3% stake in L&T Shipbuilding
12 April 2019
Larsen and Toubro Ltd (L&T) has acquired the minority stake held by Tamilnadu Industrial Development Corporation (Tidco) in L&T Shipbuilding for a cash consideration of Rs32.74 crore.
Tamil Nadu Industrial Development Corporation held 3 percent stake in L&T Shipbuilding, a subsidiary of Larsen and Toubro Ltd.
“Pursuant to the regulation 30 of the Sebi (Listing Obligations and Disclosure Requirements) Regulations, 2015, we hereby inform that the Company has purchased the entire stake held by Tamil Nadu Industrial Development Corporation Limited (Tidco) in L&T Shipbuilding Limited, a subsidiary company, on 10 April 2019,” the company stated in a release.
Shares of Larsen & Toubro (L&T) rose more than 1 percent intraday Thursday after company bought entire stake in its subsidiary company.
The acquisition is not a related party transaction and transaction is done on an arms length basis, the company added.
L&T's Kattupalli yard is located north of Ennore Port, about 40 km from Chennai. The facility is designed for modular construction and repair of a wide range of defence ships and submarines.
L&T’s shipbuilding arm offers total solutions, from concept design to construction for new builds, as well as repair, refits and mid-life upgrades. The offerings span both defence and commercial vessels.