L&T shares drop on World Bank sanctions

Shares in construction major Larsen & Toubro dropped by more than 1 per cent in early trade after the World Bank said it would not allow the company to participate for bidding in its projecs. The ban on L&T is for 6 months.

However, L&T clarified in a note to the BSE as follows, "We wish to invite your attention to the news item which appeared on the website of Sanctions Board of the World Bank on March 7, 2013 and in today's media.

The sanctions imposed by the World Bank for 6 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 looks forward to the opportunity to participate in future World Bank Projects upon completion of this 6 month period of ineligibility."

GoodReturns.in