The much-awaited sale of government’s stakes in various companies held by the Specified Undertaking of the Unit Trust of India is set to take off. The government will sell about 3% stake in Larsen &Toubro worth Rs 4000 crore held by the SU-UTI through a block deal on Friday.
It has set a floor price of Rs 1415.66 per share,2% discount to Thursday’s closing price of Rs 1444.55 on BSE. The government holds 8.16% stake in Larsen & Toubro worth over Rs 11,000 crore through SUUTI, which was set up in February 2003 after the breakup of the Unit Trust of India when its flagship US-64 scheme collapsed. The net asset value-based schemes were shifted to UTI Asset Management Co. Large equity holdings and other assets including real estate and 25 assured-return schemes went to SUUTI. ICICI Securities,Citi and Morgan Stanley are bankers to the transaction.