L&T gained 0.59% to Rs 1,140 at 10:20 IST on BSE after the company announced that it has entered into a definitive agreement with ESAB Holdings to sell entire stake in EWAC Alloys.
The announcement was made after market hours yesterday, 11 October 2017.Meanwhile, the S&P BSE Sensex was up 108.74 points, or 0.34% to 31,942.73.
On the BSE, 18,517 shares were traded in the counter so far, compared with average daily volumes of 1.93 lakh shares in the past one quarter. The stock had hit a high of Rs 1,144.05 and a low of Rs 1,135.05 so far during the day. The stock had hit a 52-week high of Rs 1,249.95 on 20 September 2017. The stock had hit a 52-week low of Rs 863.54 on 9 November 2016.
The stock had underperformed the market over the past one month till 11 October 2017, falling 6.87% compared with the Sensex's 0.15% fall. The stock had also underperformed the market over the past one quarter, declining 2.26% as against the Sensex's 0.27% rise. The scrip had, however, outperformed the market over the past one year, gaining 17.14% as against the Sensex's 13.68% rise.
The large-cap company has equity capital of Rs 280.11 crore. Face value per share is Rs 2.
L&T said that it has entered into a definitive agreement with ESAB Holdings, a company registered in the United Kingdom, on 11 October 2017, for the divestment of its 100% stake in EWAC Alloys for Rs 522 crore.
EWAC Alloys' total revenues during the year ended 31 March 2017 (FY 2017) was Rs 211.20 crore, constituting around 0.19% of the total consolidated revenue of L&T for FY 2017 and it reported a net worth of Rs 95.69 crore as on 31 March 2017.
Subject to customary closing conditions, the sale of shares is expected to be completed within 60 days from the date of execution of the share purchase agreement.
L&T's consolidated net profit rose 50.6% to Rs 1028.30 crore on 9.6% rise in net sales to Rs 23810.86 crore in Q1 June 2017 over Q1 June 2016.
L&T is a major Indian multinational engaged in technology, engineering, construction, manufacturing and financial services.
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