Infrastructure major Larsen & Toubro on July 25 announced that its board has given the nod to invest Rs 506 crore in its subsidiary L&T Energy Green Tech Ltd (LTEGL), and also agreed to acquire the entire 40 percent stake held by Sapura Nautical Power Pte in their joint venture L&T Sapura Offshore Private Ltd (LTSOPL).
The proposed investment in LTEGL, which recorded a total income of Rs 21.19 lakh as of March 31 this year, will fall within the related party transactions, L&T said.
The Rs 506-crore investment will be made "either by subscribing to equity or preference shares or by way of inter corporate deposits or company guaranteed debt or a combination of these and will be done at 'arm's length'," the regulatory filing added.
Also Read | L&T gets board nod for Rs 10,000-crore share buyback at 17% premium
LTEGL is engaged in the power sector including non-conventional sources of power, the exchange filing stated, noting that the firm will be acting as "the holding company for creating a focused entity structure which will house the multiple business portfolios of green energy through step down subsidiaries and joint ventures."
Acquisition of Sapura's stake
Sapura currently holds a 40 percent stake in LTSOPL, which was incorporated in September 2010 with the objective of doing installation of offshore structures for the oil and gas industry, pipe laying and allied services. The remaining 60 percent stake is held by L&T.
The board of L&T approved the decision to acquire Sapura's entire 40 percent stake. "4,000 equity shares are proposed to be acquired at a price of Rs 10 each for a consideration of Rs 40,000," the exchange filing noted.
LTSOPL is not carrying out any operations and does not have any revenue, it further clarified.
L&T also declared its financial results for the quarter ending June 2023, reporting a 46 percent on-year jump in net profit to Rs 2,493 crore, and a 34 percent on-year jump in revenue to Rs 47,882 crore.
Before the quarterly results were declared, the scrip settled at Rs 2,561.95 on the BSE, which was 1.67 percent lower than the previous day's close.
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!
