L&T Finance shares fall on lower stake sale price

Shares of L&T Finance Holdings fell by over 5 per cent after a proposed stake sale by the company's promoter L&T was priced at a steep discount.

Engineering firm Larsen & Toubro had on Tuesday said it would sell as much as 1.6 per cent stake in its financial services unit L&T Finance on Wednesday for about Rs 204 crore.

The floor price of Rs 74 for the stake sale was at a discount of 9.7 per cent to the company's closing price on Tuesday.

Reacting to the news, the scrip of L&T Finance opened on Wednesday on a weak note and further lost 5.36 per cent to Rs 77.55 on the Bombay Stock Exchange.

L&T is making an offer for sale (OFS) for 16,551,447 equity shares of face value of Rs 10 each, constituting 0.96 per cent of the capital of the company, it had said in a BSE filing.

In addition, L&T said it may choose to sell up to 11,034,297 equity shares representing a 0.64 per cent stake in L&T Finance.