L&T Looks to Raise .₹ 6,000 cr Via NCDs

The Economic Times - - Companies - Ra­chita.Prasad @times­group.com

Mumbai: Engi­neer­ing ma­jor Larsen & Toubro may raise up to ₹ 6,000 crore in 2017-18 through is­sue of non-con­vert­ible deben­tures.

The $17-bil­lion con­glom­er­ate will seek share­hold­ers’ ap­proval at its 72nd an­nual gen­eral meet (AGM) on Au­gust 22, it in­formed the bourses. The pro­posal is seen only as an en­abling res­o­lu­tion right now, since the com­pany has no ma­jor cap­i­tal ex­pen­di­ture plans, as it fo­cuses more on cash con­tracts.

“The com­pany re­quires ad­e­quate cap­i­tal to meet the needs of grow­ing busi­ness. While it is ex­pected that the in­ter­nal gen­er­a­tion of funds would par­tially fi­nance the need for cap­i­tal and debt rais­ing would be an­other source of funds, it is thought pru­dent for the com­pany to have en­abling ap­provals to raise a part of the fun- ding re­quire­ments for the said pur­poses as well as for such other cor­po­rate pur­poses, as may be per­mit­ted un­der ap­pli­ca­ble laws, through the is­sue of ap­pro­pri­ate se­cu­ri­ties as de­fined in the res­o­lu­tion, in In­dian or in­ter­na­tional mar­kets,” L&T said.

While the res­o­lu­tion says that the fund rais­ing would be through pri­vate place­ment of NCDs, the com­pany adds in the notes that the fund rais­ing could be through a mix of eq­uity and eq­uity-linked in­stru­ments, as may be ap­pro­pri­ate. “Mem­bers’ ap­proval is sought for the is­sue of eq­uity shares, se­cu­ri­ties linked to or con­vert­ible into eq­uity shares or de­pos­i­tory re­ceipts of the com­pany.”

The pro­posal is seen only as an en­abling res­o­lu­tion right now, since L&T has no ma­jor capex plans

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