BackGovt sells 2.5% stake in L&T held via SUUTI, raises Rs4,000 crore
The government raises Rs4,000 crore through sale of 2.5% stake in Larsen & Toubro, held through Specified Undertaking of the Unit Trust of India (SUUTI)
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New Delhi: The government on Wednesday raised Rs4,000 crore through sale of 2.5% stake in engineering firm Larsen & Toubro, held through Specified Undertaking of the Unit Trust of India (SUUTI). Shares of L&T closed at Rs1,753.85, up 0.19% over Tuesday’s close on the BSE.
SUUTI, which was created to take over part of the assets and liabilities of the now-defunct Unit Trust of India, held 6.53% stake in L&T. With the sale, the government holding in L&T through SUUTI has come down to a little over 4%.
With this transaction, the government has garnered nearly Rs6,400 crore from disinvestment so far in the current fiscal. The Budget has estimated to collect Rs72,500 crore through minority sale and strategic stake sale of CPSEs.
Besides ITC, SUUTI also holds stake in 51 companies with major holdings in ITC (9.17%) and Axis Bank (11.53%). Earlier in February, the government had raised Rs6,700 crore through sale of 2% stake in tobacco-to-FMCG firm ITC, held through SUUTI.
The government had in November 2016 sold 1.63% in L&T, while in March 2014 sold 9% stake in Axis Bank to raise Rs5,500 crore through block deals.
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