LT offloading Satyam’s part stake
Posted by Indrodeep Banerjee on November 14, 2009
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Larsen & Toubro rose 0.97% to Rs 1650.10 on the BSE after the company made a profit of Rs 86.14 crore by paring a third of its stake in software firm Mahindra Satyam.
Meanwhile, the BSE Sensex was up 60.11 points, or 0.36%, to 16,756.14
On BSE, 47,985 shares were traded in the counter as against an average daily volume of 4.65 lakh shares in the past one quarter.
The stock hit a high of Rs 1666 and a low of Rs 1631.50 so far during the day. The stock had hit a 52-week high of Rs 1800 on 8 June 2009 and a 52-week low of Rs 557 on 9 March 2009.
The large-cap stock had had outperformed the market over the past one month till 12 November 2009, falling 0.97% as compared to the Sensex’s 1.94% fall. It had also outperformed the market in the past one quarter, gaining 15.40% as compared to the Sensex’s return of 11.16%.
India’s largest engineering and construction company by revenue has an equity capital of Rs 120.05 crore. Face value per share is Rs 2.
The current price of Rs 1661.85 discounts the company’s Q2 September 2009 annualised EPS of Rs 39.51, by a PE multiple of 42.06
Larsen and Toubro (L&T) today, 13 November 2009 sold 2.72 crore shares in Mahindra Satyam in two bulk deals at an average price of Rs 113.65 in two bulk deals in opening trade on the BSE.
Prior to the deal, L&T held a 6.9% stake or 8.11 crore shares in the Hyderabad-based software exporter which it had acquired in two tranches at an average price of Rs 82 a share. L&T also made an abortive bid to acquire the company. However in April 2009 Tech Mahindra, part of the Mahindra group, acquired a controlling stake in the scam-tainted company, and renamed it Mahindra Satyam.
L&T had 12.04% holding in Mahindra Satyam, which subsequently got diluted with fresh issue of shares to Tech Mahindra.
On 9 November 2009 L&T won an order worth Rs 1635.30 crore from the Madhya Pradesh Power Generation Company for building a 1,200 megawatts thermal power plant in central India. Earlier this month L&T also bagged an order worth Rs 6897 crore from the Maharashtra State Power Generation Company for building 1980 megawatts boiler turbine generator units.
On 9 October 2009, L&T had informed raising Rs 1872.79 crore through issuing 1.12 crore equity shares at Rs 1659.30 per share. On the same day, the company also launched an offering of foreign currency convertible bonds (FCCBs) for an aggregate amount of up to $200 million.
L&T’s net profit rose 26.10% to Rs 580.40 crore on 3.54% rise in total income to Rs 8136.39 crore in Q2 September 2009 over Q2 September 2008.
L&T attributed the muted sales growth to delay in clearances of infrastructure projects from some clients and lower offtake of industrial and machinery products. The company said order backlog is at Rs 81,623 crore, which is 2.4 times its revenue of Rs 33,926.37 crore in the year ended March 2009, giving strong revenue visibility.
The company is India’s biggest engineering & construction firm in terms of revenue..
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