On Thursday, in a stock exchange filing, Larsen & Turbo (L&T) said that it has purchased Tamil Nadu Industrial Development Corporation Ltd's (TIDCO) 3 percent stake in L&T Shipbuilding Ltd for Rs 32.74 crore.

"The company has purchased the entire stake held by Tamil Nadu Industrial Development Corporation Ltd (TIDCO) in L&T Shipbuilding Ltd (LTSB), a subsidiary company, on April 10, 2019. TIDCO held a 3 percent stake in LTSB. The same has now been acquired by L&T, to make it a wholly owned subsidiary," it said in a BSE filing.

The acquisition of L&T Shipbuilding Ltd, with a turnover of Rs 73,088.79 lakh and a negative net worth of Rs 80,914.97 lakh (as on March 31, 2018), is not a related party transaction, the company said in the filing.

L&T Limited further said that TIDCO's stake was acquired with the intention to exercise a put option that the latter had on the former as agreed at the time of inception of L&T Shipbuilding. The transaction is done on an arm's length basis, it added.

L&T Shipbuilding was incorporated on 13 November 2007 and operates a shipyard in Kattupalli, Chennai that is involved in shipbuilding and ship related activities. The company manufactures and builds warships, auxiliary vessels/crafts, and specialized commercial ships. It also undertakes repairs and refits of defence and commercial ships.

Shares of L&T Ltd rose nearly 1 percent following the announcement to an intraday high of Rs 1,387.95 on NSE.