L&T Finance opened over 1% higher at Rs.83.60 but from there, it slipped to Rs.76.85, down over 7% and it remains in the red, among top five losers currently.
The stock had hit a new high on Monday and what we see today is clearly profit booking, irrespective of the news.
The company yesterday entered into a definitive agreement with HSBC Asset Management India (HSBC AMC) to sell its wholly-owned subsidiary L&T Investment Management (LTIM) for an aggregate amount of $425 million. LTIM is the investment manager of L&T Mutual Fund.
The company will also be entitled to excess cash in LTIM until the completion of the acquisition. This divestment of MF business is in line with the strategic objective of L&T Finance Holdings of unlocking value from its subsidiaries to strengthen its balance sheet.