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SUUTI Divests Part Stake In L&T Via Block Deals

Government gets Rs 4,000 crore from the stake sale in L&T

North Block which houses the Ministry of Finance. (Photographer: Prashanth Vishwanathan/Bloomberg)
North Block which houses the Ministry of Finance. (Photographer: Prashanth Vishwanathan/Bloomberg)

The Indian government's investment holding arm sold 2.5 percent stake in Larsen and Toubro Ltd. (L&T), via six block deals, bringing down its stake in the company to just over 4 percent. Divestment Secretary Neeraj Kumar Gupta said the government has got around Rs 4,000 crore from the stake sale.

The Administrator of the Specified Undertaking of the Unit Trust of India sold a total of 2.4 crore shares, as part of its decision to eventually bring down its stake in the heavy engineering major to just over 3 percent, said a banker aware of the development, on the condition of anonymity. Life Insurance Corporation of India is one of the biggest buyers in these three transactions, the person added.

SUUTI held 6.68 percent in L&T at the end of March 31 as per the company filing to the stock exchange.

The first four tranches were priced at Rs 1,760.20-1,774.20 per share, according to data available on Bloomberg.