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E-mail ID will not be published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

  • The NDA government would do well to keep its economic focus in place

    It is as if the worst horrors conjured by liberal secularists about India’s prime minister could be finally coming true.

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

Urs Schöttli

Shifting sands in the Far East

As was to be expected, Japanese prime minister Shinzo Abe ...

Zehra Naqvi

When humanity died, bestiality prevailed

The terrorist attack that killed 132 children in Peshawar has ...

Bubbles Sabharwal

Why self-esteem must be your best friend forever

Two negatives do make a positive! Imagine no doubts, no ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture