BS reported that Larsen & Toubro has raised USD 600 million through qualified institutional placements and issue of foreign currency convertible bonds.
The USD 400 million share sale to qualified institutional buyers at INR 1,659.30 has been completed at a 1.1% discount to Wednesday’s closing price of INR 1,677.25. The USD 200 million bonds with a coupon rate of 3.5%have been issued at INR 1,659.30, a 15% premium to the base price of INR 1,660. It will be mature in 2014.
Mr R Shankar Raman executive president finance of L&T said that “The proceeds of the issues will be utilized for growth capital. There are opportunities coming up in power, hydrocarbon, railways, road, port, airport, water management technology and urban infrastructure. The funds will help strengthen the company’s financial position and allow it to bid for large upcoming projects. The fund will be utilized within 12 to 24 months.”
The QIP allotment would be completed by October 21. The fund raising will dilute L&T’s equity capital by 1.9%.
Citi is the lead book runner for both the deals.
(Sourced from http://www.steelguru.com/news/index/2009/10/10/MTE1NDA2/Larsen_and_Toubro_raises_USD_600_million.html)
Friday, October 9, 2009
Larsen and Toubro raises USD 600 million
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