L038;T to enter insurance business

On a question whether the company was looking at diluting its stake in Mahindra Satyam,Deosthalee said that Lamp;T was in no hurry to sell its 6.9 per cent stake in Mahindra Satyam. We are not selling our stake in Mahindra Satyam and there is no intention to sell our stake immediately, he said. Sebi guildelines bar Lamp;T from selling stake in the company for six months from the final bid date to insulate the scrip from volatility. There is a lock-in period and we have applied for relaxation. We will take a call after the deadline. We have not decided as of now, Deosthalee said. Lamp;T had earlier approached Sebi for relaxation of deadline for selling its stake in Mahindra Satyam.

Lamp;T Finance,a group firm,intends to raise funds up to Rs 1,000 crore by issuing non-convertible debentures to public. The company would offer 50 lakh secured non-convertible debentures at Rs 1,000,totaling to Rs 500 crore with an option to raise an additional Rs 500 crore if the subscription is over subscribed.

The issue offers various investment options and maturity periods range of 5,7 and 10 years and yield on redemption of up to 10.5 per cent. The issue would open for subscription for public tomorrow and would close on September 4,2009,it said. It is proposed to be listed for trade on National Stock Exchange. Proceeds of the issue would be used for various financing activities and investments for its business operations,including capital expenditure and working capital requirements,the company said.