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