L&T shares gain after FIPB approves unit's FDI proposal

Tags: FDI, FIPB, L&T, Companies
Larsen and Toubro shares gained today after the government approved a Rs 1,000 crore foreign direct investment proposal of its infrastructure arm.

L&T shares climbed 2.85 per cent to Rs 1081.60 at the close on the BSE after rising to Rs 1,085.90. The stock contributed the most to gains in the benchmark Sensex, which added 110.69 points.

L&T Infrastructure Development Projects got the go-ahead to allot securities to a wholly owned subsidiary of Singapore-based CCP Investment, entailing a foreign fund inflow of Rs 1,000 crore.

The Foreign Investment Promotion Board said February 20, that it has approved the proposal, L&T said in a BSE filing. The investment in L&T Infrastructure Development Projects will be made through equity shares, compulsorily convertible preference shares or debentures.

The investment is subject to finalisation and execution of definitive agreements with the investor and receipt of necessary regulatory and other approvals, L&T said.

L&T Infrastructure Development Projects is engaged in public-private partnership projects in the country such as roads and bridges, ports, metro rail projects, wind energy and power transmission lines.

The Hyderabad metro rail project, expected to be operational in 2015, is among its major projects. It also has a 50 per cent stake in Odisha's Dhamra port.

L&T had said on December 20 it is in talks with a large global institutional investor for a partial stake sale in L&T Infrastructure Development Projects in two tranches, involving Rs 2,000 crore of investments.

The initial issue of Rs 1,000 crore of securities will be followed by the second tranche of an equal amount after 12 months.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • Regional parties that brought diversity to Indian democracy are at a dead end

    In the two decades, which began in 1989, when the paradigm of coalition politics came to dominate central governments, it would have sounded far-fetch

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Tushar Gandhi

Sustainable model for rural sanitation

Prime minister Narendra Modi has promised to build a toilet ...

Kuruvilla Pandikattu SJ

What we can learn from agnosticism

As an agnostic, the American writer David Breeden is aware ...

Shona Adhikari

When women to birds become a painter’s muses

This week the focus is on renowned artist Amitabha Banerjee, ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture