Larsen & Toubro or simply L&T is one of the biggest and one of the most reputed companies in India. The company, however, was in the news for all the wrong reasons recently.
L&T Losses Rs 70,000 Crore Tender
This is because the company CEO, SN Subrahmanyan, fervently proposed a 90-hour workweek, apart from making his employees work on Sundays.
Now, L&T is in the news for another wrong reason. The company just lost a major contract with the Indian government.
The SN Subrahmanyan-led company was denied a tender worth a staggering Rs 70,000 crore from the Defence Ministry of the Indian government.
Why Did This Happen?
No, contrary to some conclusions, that may have been drawn, it was not the company’s boss’s much-criticised remarks. The reason here was a little different and technical.
As per reports, L&T was not awarded the Rs 70,000 crore tender for this project since it did not meet the Indian Navy’s criteria in its tender document specifications for a sea-proven system.
This resulted in the government cancelling this mammoth tender. As a result of this development, the public-owned Mazagon Dock Shipbuilders Ltd are the only ones in the frey.
Where do the L&T Shares stand?
The shares of the Mumbai-based infrastructure giant slipped in value on Monday, January 27.
The shares of the company started on a negative note, it was lower than the previous session’s closing. The decline however only deepened further as the day progressed.
The shares of the company dipped by a crucial 1.09 per cent or Rs 37.70, at the time of writing. This took the overall of the company shares to Rs 3,421.00 per piece.
It is to be noted that the company shares have declined by 5.19 per cent or Rs 187.30 in a month, ever since the controversy surrounding the workhour debate came to light.
