Engineering company Larsen & Toubro on Thursday said it has raised USD 600 million (about Rs 2,400 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 USD 400 million through issue of shares to qualified institutional buyers (QIBs) and a further USD 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 per cent premium on conversion.
The engineering giant had raised USD 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 Rs 1,644.90, down 1.94 per cent on the BSE.