The L&T Technology Services stock fell in trade today amid report that its parent company Larsen & Toubro has offered to sell 41 lakh L&T Tech shares (4 percent of paid up capital) at floor price of Rs 1,400, 5.9 percent lower than their Wednesday close.
L&T also has an option to sell an additional 25 lakh shares in its subsidiary if the proposed offer for sale is oversubscribed.
The company said if the oversubscription option is exercised the stake may fall further to 75.10 percent.
Currently, promoters have 2.03 crore shares or 87.10 per cent stake in the firm. The offer for sale will help L&T Technology Services meet SEBI's minimum public holding norm.
The offer for sale (OFS) will open for non-retail investors on Thursday and for retail investors on Friday.
At 1:57 pm, the stock was trading 4.17% or 61 points lower at 1,422 level on the BSE. The stock opened at a loss of 3.77% in trade today. The L&T stock was trading 0.94% or 12 points lower at 1285 level.
9 of 13 brokerages rate the stock "buy" or 'outperform', three "hold" and one "sell", according to Reuters.
The mid cap stock is up 90.09% during the last one year and has gained 39.33% since the beginning of this year.