L&T may sell 20% stake in infra arm, shares gain
Engineering and construction major Larsen & Toubro (L&T) gained as much as 0.9 percent intraday on Monday after media reports indicated that the company is looking to raise over Rs 2,500 crore by selling 20 percent in its wholly owned infra assets holding arm L&T IDPL.
March 18, 2013 / 15:03 IST
Engineering and construction major Larsen & Toubro (L&T) gained 0.9 percent intraday on Monday after media reports indicated that the company is looking to raise over Rs 2,500 crore by selling 20 percent in its wholly owned infra assets holding arm L&T IDPL.
Analysts say the stake sale is partly priced in as it has been committed to by the management since the beginning of the year and this deal is running behind schedule. At indicated valuation, the deal is likely to be value accretive and the equity raising will reduce some of the strain on the company's balance sheet, analysts add. "L&T Infrastructure Development Projects is in advanced negotiations to divest up to 20 per cent stake to marquee investors, including Malaysian sovereign fund Khazanah. Abu Dhabi-headquartered Mubadala Development Corporation and US-based fund Capital International are also in the final list of potential investors," the media report said.At 12:04 hours IST, shares rose 0.1 percent to Rs 1,508 on Bombay Stock Exchange. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
