L&T showed some spirited movement in the opening bell session, going up 1.5% from previous close of Rs.1400.60 to Rs.1424.50. Its 52-week high is at Rs.1469.60.
The company announced yesterday that it has entered into definitive agreements for the divestment of its Electrical & Automation Business including the associated subsidiary companies outside India, to Schneider Electric (India) Private Limited and Schneider Electric JV Holdings Pte. Ltd.
This is being done through an all-cash deal of Rs.14,000 crore.
The transaction includes all the current business segments of E&A except marine switchgear and Servowatch Systems.
The E&A business reported net revenue of Rs.5,038 crore during FY2016-17.
Mr S.N. Subrahmanyan, CEO & MD, Larsen & Toubro said: “The divestment of E&A business is in line with L&T’s stated intent of unlocking value within the existing business portfolio to streamline and allocate capital and management focus for 2 creating long-term value for our stakeholders. We believe the partnership with Schneider is win-win for our employees, business partners, and shareholders.”