BackL&T eyes real estate, infrastructure assets listing in India
L&T is exploring listing its real estate and infrastructure assets in the domestic market through newly created investment trusts
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Mumbai: India’s largest engineering and construction company Larsen and Toubro Ltd (L&T) is exploring listing its real estate and infrastructure assets in the domestic market through newly created investment trusts.
“We have put the decision to list our infrastructure assets in Singapore on hold. We are examining to list our real estate asset under real estate investment trusts, or REITs, and infrastructure assets under infrastructure investment trusts (InvITs). However, nothing has been decided," said L&T’s chief financial officer R. Shankar Raman.
Last month, capital market regulator Securities and Exchange Board of India (Sebi) firmed up regulations that will govern REITs and so-called InvITs that the market regulator had decided to allow.
Following a board meeting in August, Sebi approved a long-pending proposal to allow Indian firms to launch REITs—a move that will enable easier access to funds for cash-strapped developers and create a new investment avenue for institutions and high net worth individuals, and eventually ordinary investors.
In November 2013, L&T said it is considering an initial public offering (IPO) in Singapore for its subsidiary L&T Infrastructure Development Projects Ltd (L&T IDPL) as well as listing certain road assets of the unit through a business trust in Singapore.
L&T’s road unit company runs 13 expressways and has five more under construction.
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