L&T will continue to monetize assets: Naik

Mumbai: India’s biggest engineering and construction company Larsen and Toubro Ltd (L&T) will monetize assets from time to time and “selectively bid for value-accretive projects in the roads and transmission line businesses”, said group executive chairman A.M. Naik in the company’s annual report for fiscal 2015.

Naik said L&T intends to unlock value of its information technology (IT) and technology services business.

“We are evaluating various options, subject to various factors, to discover the value of this business,” he said.

The company has been trying to rationalize its presence across businesses by selling non-core assets to bring down debt.

The company is also planning sell up to 15% stake in its IT services unit L&T Infotech through an initial public offering (IPO), chief financial officer Shankar Raman said in July.

L&T’s consolidated debt as on 31 March stood at Rs.90,698.61 crore. Earlier this week, L&T sought shareholder approval to raise up to $600 million or Rs.3,200 crore, through the issue of securities. The conglomerate will hold its annual general meeting on 9 September.

A corporate proxy for the broader economy, L&T has business interests in construction, heavy engineering, power, shipbuilding, defence manufacturing, IT, finance and realty. It makes products ranging from switchboards to submarine parts.

Larsen & Toubro Limited