Shareholding norms: L&T Finance Holdings explores various options

NEW DELHI: Larsen & Toubro today said various options are being explored for its subsidiary L&T Finance Holdings (LTFH) to achieve the minimum public shareholding level.

According to a regulatory filing, L&T Finance Holdings has time till August 10, 2014 to achieve the 25 per cent minimum public shareholding as mandated by market regulator Sebi.

"... the company is exploring various methods as prescribed to achieve 25 per cent minimum public shareholding in LTFH on or before the said due date," the filing said.

Companies listed on the bourses after June 2010 have more time to comply with the minimum public shareholding rules.

Sebi had given a time period of three years -- from June 2010 to June 2013 -- for listed entities to meet the minimum public shareholding norms.

LTFH was listed in August 2011. Meanwhile, Larsen & Toubro said that it has no immediate plans to "sell up to one per cent of the company's shareholding in LTFH on the floor of the stock exchanges".

Sebi's approval for selling up to one per cent stake in LTFH is only one of the several methods available to meet minimum public shareholding norms, the filing noted.

At the end of June quarter, Larsen & Toubro held 82.54 per cent stake in LTFH.

Shares of LTFH fell nearly three per cent to close at Rs 61.35 on the BSE.