Larsen & Toubro (L&T) has decided to defer the sale of its wholly-owned subsidiary L&T Valves, as the company focuses on the initial public offering (IPO) of its Information Technology subsidiary, reports a business daily.
As part of its strategy to exit non-core businesses, L&T had decided to sell stakes in some units, including L&T EWAC Alloys and L&T Valves.
It had mandated Citigroup to scout for buyers and was expecting L&T Valves to fetch ~US$700 million, reports the financial newspaper.
L&T Valves has manufacturing facilities in Chennai, Coimbatore and Kancheepuram, and makes flow-control solutions for the oil & gas and power industries.
L&T was also looking to sell its stake in another wholly-owned subsidiary, L&T EWAC Alloys, which is into maintenance and repair welding, and has a factory in Ankleshwar, Gujarat.