L&T shares rise on board approval to raise ₹7,500 crore via long-term debt
Upstox
2 min read • Updated: March 27, 2024, 3:19 PM
Summary
L&T announced that its construction arm, L&T Construction, has bagged large orders for Buildings and Factories Business. According to L&T classification, orders worth ₹2,500-5,000 crore are termed as large orders by the company.
Shares of engineering giant Larsen and Toubro (L&T) gained more than 1% on Wednesday to trade near their year-high levels after the company announced bagging a large order by its construction division.
The engineering conglomerate on Tuesday also announced its board approving a proposal for long-term borrowings of ₹7,500 crore.
The stock opened on a firm note on NSE and gained a further 1.55% to hit a high ₹3,727.2 apiece on the exchange. More than 5 lakh shares changed hands on the exchange. The traded value was ₹185.78 crore.
The stock is trading around 0.5% lower than the 52-week high of ₹3,737.90 hit on January 30, 2024. It has surged 76% from its 52-week low of ₹2,121 hit on March 29, 2023.
The company board on Tuesday approved a proposal for long-term borrowing of ₹7,500 crore.
The loans will be in the form of external commercial borrowing, non-convertible debentures and term loans.
L&T in FY23 raised ₹2,000 crore through private placement of non-convertible debentures. The company in its annual report had stated that it would raise long-term debt in the current fiscal to refinance borrowings of ₹4,500 crore.
The L&T board also approved the appointment of MSKA & Associates statutory auditors for five years.
In a separate filing, L&T announced that its construction arm, L&T Construction, has bagged large orders for Buildings and Factories Business. According to L&T classification, orders worth ₹2,500-5,000 crore are termed as large orders by the company.
The Buildings and Factories (B&F) vertical has bagged multiple orders in the domestic and international markets, a filing stated.
The company has won a contract to build the Al Namaa General Hospital from the Ministry of Health, Sultanate of Oman. The scope of work includes the construction of a 165-bed hospital building.
In the Indian market, L&T has won a contract to construct Maa Kamakhya Temple Access Corridor, in Assam from the Assam PWD department.
Shares of L&T were trading at ₹3,702 apiece, up 0.8% on the NSE at 15:15 pm.