Shares in Larsen & Toubro Ltd is up marginally, outperforming falls in the Nifty, after The Economic Times reports its infrastructure unit is looking to raise 25 billion rupees by selling up to a 20 percent stake to investors.

The report, citing three people familiar with the negotiations, says L&T Infrastructure Development Projects is already in talks with potential buyers.

An L&T spokesman declines to comment.

"We view this news as a material positive for L&T, given that L&T IDPL has been a major overhang on the stock on back of huge investment commitments and limited cash inflow," brokerage Edelweiss said in a note seen by Reuters.