Larsen & Toubro, the promoter entity of L&T Finance Holdings, successfully off-loaded 8.32 crore shares representing 4.85% stake in its subsidiary via the offer-for-sale (OFS) route on Friday, helping the engineering and construction conglomerate raise around R583 crore.
The auction was oversubscribed 1.28 times. As per BSE data, the offer received bids for 10.63 crore shares at an indicative price of R72.77 per share. Indicative price is the volume weighted average price of all the valid or confirmed bids. Investors bid for 5.88 crore shares at 100% margin and 4.75 crore shares at nil margin.
L&T had set a floor price of R70 per share and had offered to sell 5.55 crore shares with an option to sell an additional 2.77 crore shares via the greenshoe option.
After Friday’s auction, L&T’s holding in its financial services arm will decline to 76.66% compared with 81.5% as on quarter ending December 2013, stock exchange data showed. Shares of L&T Finance Holdings declined 6.2% or R4.90 per share at R74.30. The scrip has touched a high 88.35 and low of R53 in the last 52 weeks, exchange data showed.