L&T, Rashtriya Chemicals shares in focus as board awards ₹797 crore ammonia plant revamp deal to cut energy costs

Larsen & Toubro (L&T) and Rashtriya Chemicals shares are set to be in the focus of stock market investors on Monday, September 28, as the fertiliser maker’s board of directors approved the ₹797 crore ammonia plant revamp deal to reduce the overall energy consumption cost.

After a bidding round, L&T emerged as the lowest bidder for the tender, in which the construction company will have to conduct detailed engineering work and manufacture, supply, construct, erect, commission, and guarantee-run the facility.

“We hereby inform that the board of directors of the company at its meeting held today, i.e. September 25, 2026, has accorded its approval for placement of the purchase order on Larsen and Toubro Limited for Rs 797 crore plus taxes,” Rashtriya Chemicals informed the stock exchanges.

As per the order details, L&T will get a period of 36 months to carry out the modernisation process, which the company aims to help reduce the overall energy consumption in fertiliser manufacturing.

₹1,500 crore FPO fundraise plan

After the company’s 48th annual general meeting (AGM), Rashtriya Chemicals board also approved a plan for the company to raise up to ₹1,500 crore through a further public offering (FPO) subject to the necessary approvals.

“We wish to inform that the shareholders of the company at the 48th Annual General Meeting held on September 25, 2026, have approved raising funds by way of a Further Public Offering through a fresh issue of Equity Shares by the Company aggregating up to Rs. 1,500 crore,” the company informed the stock exchanges.

Government-owned company Rashtriya Chemicals’ latest fundraising approval needs to be further approved by the Department of Fertilisers, Government of India and the Department of Investment and Public Asset Management (DIPAM) before the company is able to raise funds from investors.

Rashtriya Chemicals share performance

NSE data showed that Rashtriya Chemicals shares have gained nearly 32% in the last five years, but the company’s stock has declined over 14% in the last three years and has lost over 26% of its value in the last one year.

On a YTD basis, the company’s stock has lost more than 25% so far in 2026, but the shares have declined 12.5% in the past one month. The exchange data showed that Rashtriya Chemicals shares have dropped marginally (0.2%) in the last five market sessions.

The company’s market capitalisation (m-cap) was at ₹5,990 crore as of the stock market close last week on Friday.

L&T stock to watch

While Rashtriya Chemicals’ shares are set to be in focus due to the company’s capex outlay update, Larsen & Toubro shares will remain in focus of investors as the revamp deal adds ₹797 crore in straight revenues to the company’s EPC order segment.

Larsen & Toubro shares have delivered 119% returns to investors in the last five years, over 33% gains in the last three years, and more than 6% returns in the past one-year period, according to NSE data.

However, L&T shares have lost 6.3% YTD and have dropped 5.8% in the last one-month period. The company’s stock was down 0.2% in the last five market sessions on the exchange.

The construction major’s market capitalisation (m-cap) was at over ₹5.3 lakh crore as of the trading close on Friday, September 25.