L&T Shares Hit 52-Week High On Reports Of L&T Finance Selling Distressed Assets To ARC

Larsen and Toubro (L&T) shares traded higher in the early morning trade on Thursday to hit a fresh 52-week high of Rs 3034.70. The share price of L&T was up 2.46% at Rs 3034.70 per share at 10:18 am IST today. The stock has a 52 52-week high and 52-week low of Rs Rs 3034.70 and 1,798.00. The sharp jump in the stock's share price was seen after a report by The Economic Times stated that L&T Finance is looking to offload Rs 4,762 crore of its distressed-asset loan book to three asset reconstruction companies by the end of this quarter to help clean up its books. The decision is seen as a strategic move by the company to maintain a healthy balance sheet.

Quoting people aware of the matter, the report said that Kotak Mahindra Bank-backed Phoenix ARC is set to acquire most of the 15 bid-out accounts, followed by CFM ARC and Prudent ARC.

L&T Finance, a subsidiary of listed L&T Finance Holding, involved a larger portfolio of Rs 5,293 crore ($713 million) encompassing 16 accounts. It invited offers from ARCs in a combination of security receipts (SR) and cash payment wherein 15% will be paid as upfront cash and the balance 85% as security receipts. The company had set a reserve price of Rs 2,080 crore.

According to some media sources, only 15 accounts were eventually sold, as ARCs showed a lack of interest in the exposure from Delhi-based realtor Supertech.

The company is expected to finalize the deal by the close of this month. Earlier on September 26, L&T Finance sold 31,49,467 shares of Zee Media Corp at an average price of Rs 12.02, according to NSE data.