Larsen & Tourbo (L&T) on Thursday divested its stake in L&T Technology Services to comply with the 25 per cent minimum public shareholding requirement. The engineering giant is offering up to 6.6 million shares, representing 6.6 per cent stake, through the so-called offer for sale (OFS) route.
So far, the offering has garnered bids for 5.34 million shares from institutional investors. Retail bidding -- for those investing up to Rs 200,000 -- will take place on Friday. The base price for the share sale has been set at Rs 1,400 apiece. Most of the bids in the OFS have come at Rs 1,402.
Shares of L&T Tech declined 4.7 per cent to close at Rs 1,414.6. Currently, L&T holds 87.1 per cent stake in L&T Tech. If the entire 6.6 per cent share sale goes through, the stake will drop to 80.5 per cent.
The core OFS issue is for four per cent stake sale, while the company has an option to retain additional subscription for another 2.44 per cent stake sale.
L&T Tech had come out with an initial public offering (IPO) in September 2016. According to regulations, L&T has time till September 2019 to bring down its stake to at least 75 per cent. Shares of L&T Tech have gained 65 per cent since its IPO.