L&T shares surge over 5% on succession planning

MUMBAI: Shares of Larsen and Toubro today surged by over 5 per cent in the morning trade on the bourses, as the company appointed K Venkataraman as its CEO and MD and said that A M Naik would remain Chairman for next five years.

In a long-awaited top management rejig, the engineering and construction giant L&T today bifurcated the roles of Chairman and Managing Director.

Naik, currently Chairman and MD, would remain Executive Chairman, while whole-time director Venkataraman would assume the role of CEO and MD with effect from April 1.

Enthused by the announced, the stock today gained 5.42 per cent to a high of Rs 1,304 on the BSE this morning. At the NSE also, the stock 5.4 per cent to Rs 1,304.50.

Shares of the group's another listed company L&T Finance Holdings also gained 1.4 per cent and was trading at Rs 47.60. The group has a major presence in engineering, construction and manufacturing activities and has also expanded into businesses like technology and financial services.

The analysts said that the investors have welcomed the move as it enables Naik's continued guidance for the group for the next five years, while appointing a new chief for the day- to-day operations.