L&T to raise $1 bn in 6 months

Larsen & Toubro is set to raise $400 million through its third issue of global depository receipts, report Indulal PM & Suman Layak.

Larsen & Toubro is set to raise $400 million (Rs 1,600 crore) through its third issue of global depository receipts for part funding its different investments as part of a programme to raise $1 billion in six months. It is already in talks with Europe's largest shipbuilder Ficantieri for a joint venture and has plans to float a subsidiary for offshore oil and gas exploration.

HT Image

In an interview with

Hindustan Times

, L&T Chairman and Managing Director AM Naik said: "We have already mandated for a $400 million GDR issue. The price will be fixed in the first fortnight of November. The last time we did a GDR was in the 1990s." Naik added that the GDR would continue to be listed in Luxembourg. He added: "We have a mandate to raise $1 billion in six months but we will raise the remaining amount as and when we need it."

The company had taken approval for a GDR issue at its last annual general meeting. It has major investments coming up and the biggest is the major shipbuilding facility that it is planning with an investment of Rs 1,500 crore.