New Delhi: Getting an approval from the ministry of corporate affairs will not be easy for Larsen and Toubro Ltd (L&T), which is seeking to sell its stake in beleaguered Mahindra Satyam, people familiar with the matter said.
The construction and engineering firm would first require a clearance from the Company Law Board (CLB), an arm of the ministry that governs India’s registered firms, which it had not sought yet, the people said on condition of anonymity.
An immediate offloading of L&T’s 12% stake in Mahindra Satyam could also have capital market implications for the scrip, which has begun to show signs of recovery and this is something that may not go down well with the ministry, which has toiled hard to revive the company, they said.
The government is a part to the entire matter and if this thought process guides its stand on the issue when the matter comes before CLB, a change in agreement could get tricky for L&T, the people said.
L&T has sought permission to sell its stake from market regulator Securities and Exchange Board of India.
It had built up the 12% stake in Mahindra Satyam, earlier known as Satyam Computer Services Ltd, before Tech Mahindra Ltd bought a controlling stake in the company, which was rattled by India’s biggest corporate fraud.