L and T seeks shareholders nod to raise Rs 3,200 crore

Written by Press Trust of India | New Delhi | Updated: Aug 23 2012, 07:24am hrs
Construction firm Larsen & Toubro has sought shareholders' approval to raise up to Rs 3,200 crore through sale of equity or other securities from public and institutional investors.

The company may use options like public issue and private or qualified institutional placement (QIP) through one or more tranches or any convertible securities for raising the fund not exceeding R3,200 crore at a later date, it wrote to shareholders' ahead of the annual general meeting scheduled for August 24.

The shareholders' nod has also been sought to authorise the company's Board to determine the form, terms and timing of issues, number of securities to be allotted in each tranche, issue price and others.

Though the engineering major indicated that in case of QIP, the issue would be completed within a year from the date of AGM; it did not give any exact time-line for the fund raising exercise.

L&T, which was sitting on an all-time high order-book of R1,45,723 crore, as on March 31, would raise the fund to meet its capital requirement needs.

The company requires adequate capital to meet the needs of growing business. While it is expected that the internal generation of funds will partially finance the need and debt raising will be another source of funds, it is thought prudent to raise a part of the funding needs...through issue of appropriate securities," it said.