L&T gains on receiving FIPB approval for FDI in L&T Infra

Feb-21-2014   11:27 Hrs IST

Larsen & Toubro (L&T) is currently trading at Rs. 1039.65, up by 7.55 points or 0.73% from its previous closing of Rs 1032.10 on the BSE. The scrip opened at Rs. 1034.65 and has touched a high and low of Rs. 1043.65 and Rs. 1034.40 respectively. So far 51973 shares were traded on the counter. The BSE group 'A' stock of face value Rs. 2 has touched a 52 week high of Rs. 1152.40 on 09-Dec-2013 and a 52 week low of Rs. 678.10 on 28-Aug-2013. Last one week high and low of the scrip stood at Rs. 1036.75 and Rs. 976.10 respectively. The current market cap of the company is Rs. 96533.32 crore. The Institutions holding in the company stood at 54.56%, while Non-Institutions held 42.69% of the stake. Foreign investment promotion board (FIPB) has approved L&T Infra's FDI Proposal worth Rs 1,000 crore. Canada Pension Plan Investment Board (CPPIB) would be making an initial investment of Rs 1,000 crore in L&T Infrastructure Development Projects (L&TIDPL), a unit of Larsen and Toubro (L&T), via equity shares, compulsorily convertible preference shares and/or compulsorily convertible debentures. However, the quantum of stake to be sold by L&T IDPL would be determined at a later stage owing to lack of decision on pricing front. Further, after the initial investment, CPPIB would probably invest a further Rs 1,000 crore at a later date. CPPIB, which manages $201.5 billion in funds, has a strategic alliance with Piramal Enterprises for providing structured debt financing to residential projects across India’s major urban centres. It also has a strategic alliance with the Shapoorji Pallonji Group to acquire foreign direct investment (FDI)-compliant, stabilized office buildings in India’s major metropolitan centres.