L&T falls 3% in trade on World Bank ban
Mumbai: Shares of engineering major Larsen and Toubro on Monday declined nearly three percent in early trade, after World Bank imposed a 6-month ban on the company.
The World Bank has barred Larsen & Toubro (L&T) from doing any business with it or the projects funded by it for six months, after finding that an executive of the Indian conglomerate had indulged in a fraud.
The announcement was made after market hours on Friday.
Reacting to the development, the company's stock today fell 2.73 percent to an intra-day low of Rs 1,455.25 on the BSE.
Similar movement was seen on the National Stock Exchange, where the company's shares after opening at Rs 1,460, fell 2.75 percent to an early low of Rs 1,456.25 apiece.
The debarment would continue till September 6, making L&T ineligible for being awarded contracts for any World Bank- funded projects, from receiving any loan proceeds made by the Bank or participating in any Bank-financed project.
The stock however, recovered the lost ground and was trading at Rs 1,507.45, up 0.76 percent on the BSE and at Rs 1,505.65, higher by 0.54 percent on the NSE at 1145 hours.
"The sanctions imposed by the World Bank for six months ending September 6, 2013, from participating in World Bank funded/executed projects is not expected to have material impact on the company's present or future operations or its profitability or financials," L&T had said on Friday.