L&T raises $600 million to fund future projects

L&T raises $600 million to fund future projects

New Delhi: Engineering company Larsen & Toubro said on Thursday it has raised $600 million (about Rs2,400 crore) through private placement of shares to institutional investors and issue of foreign currency convertible bonds to fund its future projects.

The company has raised $400 million through issue of shares to qualified institutional buyers (QIBs) and a further $200 million through issuance of foreign currency convertible bonds (FCCBs).

“These funds will be used for investments in our future projects in the infrastructure and power sectors. We see a lot of potential in the public private partnership projects and the fund that we have raised is basically growth capital," L&T executive vice-president Finance R Shankar Raman said.

He said the allotment to QIBs is expected to be completed between “now and the next weekend" and the FCCBs will have a five year tenure with a 15% premium on conversion.

The engineering giant had raised $400 million through global depository receipts and an equal amount through external commercial borrowing in November 2007 to fund its ongoing projects.

“The investment tenure for these funds are ending in 20011-12," Raman added.

Shares of L&T closed at Rs1,644.90, down 1.94% on the BSE.

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