L&T plans to raise $300 m via FCCBs

Larsen & Toubro plans to raise additional long-term resources worth $300 million by way of foreign currency convertible bonds (FCCBs) and international depository receipts (IDRs), in one or more tranches.

The decision was taken at a meeting of the company's board held in Mumbai today.

The funds will be utilised to part finance the company's capital expenditure for expansion, modernisation, working capital, investments in subsidiaries, infrastructure projects and acquisitions.

L&T stock today closed at Rs 2,387.30 on the Bombay Stock Exchange, which is lower by 3.19 per cent compared with the previous closing of Rs 2,466.05.

Recently, the company had launched a $100 million FCCB issue denominated in Japanese yen. The company has plans to enter new areas like deep water engineering and construction, power, steel and ship building. It had bagged a contract worth Rs 1,300 crore from the Oil and Natural Gas Corporation (ONGC) for deep water projects.

The company is also looking at doubling its revenues from the West Asian region in the next five years.

In the power generation segment, L&T's plan is to produce hydel power. It has already made bids for three small hydropower projects in Himachal Pradesh. The company intends to start with smaller projects of up to 250 mw.