Infrastructure major Larsen and Toubro (L&T) said it has purchased the entire stake held by the Tamil Nadu Industrial Corporation Ltd (TIDCO) in one of its subsidiaries, L&T Shipbuilding Ltd.
TIDCO previously held a 3% stake in L&T Shipbuilding Ltd.
Post the acquisition worth Rs 32.74 crore, L&T Shipbuilding Ltd will become a wholly-owned subsidiary of Larsen and Toubro.
L&T Shipbuilding Ltd had a turnover of over Rs 73 lakh in the financial year 2017-18.
It has a negative net worth of Rs 80.91 lakhs as of March 31, 2018. Negative net worth is a condition in which a company’s liabilities exceed its assets and shareholders’ equity. It occurs when a company borrows too much money resulting in a rise of debt.
Incorporated in 2007, L&T Shipbuilding Ltd builds warships, auxiliary vessels or crafts and specialised commercial ships.
It currently operates a modern shipyard from Kattupalli, Chennai which carries out shipbuilding and ship related activities. The shipyard also undertakes repairs and refits of both defence and commercial ships.
Headquartered in Mumbai, L&T, is one among the largest multinational firms and construction company in the country today with operations in more than 30 countries worldwide.