Mumbai, Apr 11: Larsen & Toubro Limited (L&T) has purchased the entire stake held by Tamil Nadu Industrial Development Corporation Limited ('TIDC0') in L&T Shipbuilding Limited (LTSB), a subsidiary company, on April 10, 2019.
TIDCO held 3 pc stake in LTSB. The same has now been acquired by L&T, to make it a Wholly owned subsidiary. The consideration paid to acquire the stake was Rs 32.74 crore, L&T said in a filing with BSE.
L&T Shipbuilding was incorporated on November 13, 2007 and currently operates a modern shipyard from Kattupalli, Chennai carrying out shipbuilding and ship related activities. The company undertakes manufacture and building of Warships, Auxiliary Vessels / Crafts and Specialised Commercial Ships.
In addition Kattupalli shipyard also undertakes Repairs and Refits of both Defence and Commercial ships.
The acquisition is not a related party transaction. This transaction is being done pursuant to exercise of a put option which TIDCO had on Larsen & Toubro Limited which is the Promoter of L&T Shipbuilding Limited as agreed with TIDCO at the time of inception of L&T Shipbuilding Limited.
The transaction is done on an arms length basis. (UNI)