Larsen And Toubro Limited (L&T) has purchased the entire stake held by Tamil Nadu Industrial Development Corporation Limited (TIDCO) in L&T Shipbuilding Limited, a subsidiary company.

TIDCO held 3% stake in LTSB. The same has now been acquired by L&T, to make it a Wholly owned subsidiary. The cost of acquisition is Rs. 32.74 crore.

The acquisition is not a related party transaction. This transaction is being done pursuant to exercise of a put option which TIDCO had on Larsen & Toubro Limited which is the Promoter of L&T Shipbuilding Limited as agreed with TIDCO at the time of inception of L&T Shipbuilding Limited. The transaction is done on an arms length basis.

L&T Shipbuilding was incorporated on November 13, 2007 and currently operates a modern shipyard from Kattupalli, Chennai carrying out shipbuilding and ship related activities. The company undertakes manufacture and building of Warships, Auxiliary Vessels / Crafts and Specialised Commercial Ships. In addition Kattupalli shipyard also undertakes Repairs and Refits of both Defence and Commercial ships.