Larsen & Toubro Ltd.

In a bid to achieve its potential and tap global opportunities, Larsen & Toubro (L&T) is planning to spin off its hydrocarbon division. In this regard, the company has received the board’s approval to consolidate the assets and liabilities of its hydrocarbon business with its wholly owned subsidiary L&T Hydrocarbon Engineering (LTHE).

For this, LTHE will pay L&T Rs 1,760 crore in cash. The appointed date of the scheme is April 1, 2013. All assets and liabilities would be transferred at book value and there would be no issue of shares by LTHE to the shareholders of the company post the transfer of the hydrocarbon business.

Further, the LTHE would continue to remain L&T’s 100 per cent subsidiary.