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ICRA may present fresh report on L&T's cement business revamp

MUMBAI JUNE 14. Rating agency ICRA may present an amended report on the restructuring of the cement business of Larsen and Toubro Ltd. ICRA's analytical report was discussed at today's board meeting but the discussions remained inconclusive.

Based on certain queries, the rating agency may come up with amendments, A. M. Naik, L&T managing director told reporters after the meeting here.

The queries on ICRA's work relate to business implications. Any decision, including the vertical demerger of cement business, would have a major impact on the company's networth and balance sheet, Mr. Naik said.

"No timeframe has been fixed to arrive at decisions as it is a complex matter'', he said.

ICRA submitted a formal report relating to analysis of two proposals including one by Birlas' for vertical demerger, two days ago and circulated among the board members, L&T board member and cement business head J P Nayak said.

``We will have another meeting to discuss the issue of restructuring'', Nayak said.

Grasim Industries chairman Kumar Mangalam Birla said it would be premature to comment on the restructuring now.

Grasim holds about 15 per cent stake in L&T and has just concluded its offer to acquire additional 20 per cent stake at Rs. 190 per share.

Asked about the Birla group's holding in L&T on conclusion of the offer, Birla said ``we will make the details public soon''.

None of ICRA's officials were present at today's meeting, Nayak said.

On May 23, ICRA had made an analytical presentation on the restructuring of L&T's cement business to the company board but the discussions had ``remained inconclusive'' as directors had sought some clarifications.

ICRA was mandated by L&T in February to evaluate various proposals to demerge the cement business. — PTI

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