Grasim acquires over 10 p.c. shares in L&T

By Our Staff Correspondent

MUMBAI, NOV. 18. Grasim Industries Limited, the flagship company of the Aditya Birla group, has acquired 2.5 crore equity shares in Larsen & Toubro (L&T) from Reliance Industries Limited.

The transaction represents just over 10 per cent of the paid-up equity share capital of L&T and the shares have been acquired at a price of Rs. 306.6 a share with a transaction value of Rs. 766.5 crores funded mainly from internal accruals.

The initiative represents a strategic investment by Grasim to enhance long-term shareholder value. The Aditya Birla group has identified cement and knowledge-intensive businesses, with a strong service orientation, as significant growth opportunities.

According to Grasim, L&T's portfolio of businesses is a perfect fit with this aspiration. Notably, L&T's Engineering & Construction business is a provider of solutions to the infrastructure sector, both in India and abroad; and their cement business is the largest in India.

According to a senior official in the Birla group, ``This is an investment opportunity for sharing knowledge in inevitable improvement in operations for both companies. It represents a smart investment by Grasim.''

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Section  : Business
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