L&T to raise Rs3,600 crore by selling shares

Mumbai: India’s largest engineering and construction company Larsen and Toubro Ltd (L&T) plans to raise Rs.3,600 crore, or $600 million, by selling equity shares to financial institutions, also known as qualified institutional placement (QlP).

In a notice to shareholders, L&T said the company is seeking approvals to authorize its board to raise funds through issue of equity shares through QlP, convertible bonds, equity shares through depository receipts of an amount not exceeding Rs.3,600 crore or $600 million, whichever is higher.

On Monday, Mint reported that Indian firms are expected to sell shares worth at least $5 billion (around Rs.29,600 crore) to institutional investors in the next two months, riding on improved sentiment and liquidity in the equity market and hopes that the new government will revive the economy through reforms.

Companies from the infrastructure and finance sectors are among those who are likely to tap the markets, many of whom have begun discussions with bankers and potential investors, investment bankers said.

Two large companies have raised $1 billion through QIPs in the past week, with wealthy individuals and institutions participating aggressively in the issues, both of which saw bids far in excess of target.

Larsen & Toubro Limited