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Friday, November 4, 2016

2016-17 Disinvestment - NDA Govt sells 1.63% stake in L&T held through SUUTI for Rs. 2,100 cr Friday Nov 04,2016

The NDA Government on Friday Nov 04,2016 raised Rs. 2,100 crore through sale of 1.63 per cent stake in Larsen & Toubro held through Specified Undertaking of the Unit Trust of India (SUUTI). 

The transaction took place through block deals with private institutional buyers picking up the entire chunk on offer, leaving no headroom for state-run LIC to participate

SUUTI, which was created to take over part of the assets and liabilities of the now-defunct Unit Trust of India, held 8.16 per cent stake in L&T. 

The Government had approached the market to sell a minimum of 1.50 per cent stake in L&T at Rs. 1,415 apiece. 

“The Government has sold 1.63 per cent stake at a discount of 2 per cent over previous closing price (Rs 1,444.55). The deal has garnered Rs. 2,100 crore to the exchequer,”

Shares of L&T were quoting at Rs. 1,417, down 1.91 per cent over previous close in the afternoon trade on the BSE. 

The proceeds from SUUTI stake sale would help swell government’s disinvestment kitty to over Rs. 10,700 crore so far this fiscal.  

This fiscal 2016-17 the NDA Government has budgeted Rs. 56,500 crore of revenues from disinvestment, including Rs. 20,500 crore from strategic sales.

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