Larsen & Toubro is likely to make a fresh issue of global depository receipts and seek listing at one of the premier bourses Nasdaq or New York Stock Exchange. The company is seeking shareholder approval for raising fresh equity up to $700 million (Rs 2,850 crore) through domestic or foreign capital issue. The company has sought a host of approvals related to foreign listings that indicate a fresh float of American depository receipts issue is on the cards.
The company’s annual general meeting is fixed for Friday, during which the proposal for raising fresh capital will be placed before the shareholders.
Larsen & Toubro is also seeking specific shareholder approval for converting its existing GDRs to American depository receipts for listing them on Nasdaq or NYSE. The GDRs issued by L&T in 1996 are listed on the Luxembourg Stock Exchange.
The company has sought permission for listing any new issues in quite a few global stock exchanges like London, Singapore and Hong Kong.
The explanatory statement to the notice says that the company will be raising capital to meet business needs over two to three years, “including business acquisitions and capital expenditures.” L&T has also said it may raise money in different tranches and through different instruments.
The specific approvals being sought by the company include permission to open bank accounts in India and aboard for the purpose of the issue of capital.
The existing GDRs make up around 2.5 per cent of L&T’s equity capital. The largest shareholder in the company is insurance major Life Insurance Corporation of India, with a little over 16 per cent stake.