L&T rose 1.08% to Rs 1,073.05 at 9:45 IST on BSE after the company said it is in discussions with a large global institutional investor for a proposed acquisition of a stake in L&T's subsidiary viz. L&T Infrastructure Development Projects.
The announcement was made after market hours on Friday, 20 December 2013.
Meanwhile, the S&P BSE Sensex was up 69.30 points or 0.33% at 21,149.02.
On BSE, so far 27,000 shares were traded in the counter as against average daily volume of 2.99 lakh shares in the past one quarter.
The stock hit a high of Rs 1,079 and a low of Rs 1,065 so far during the day. The stock had hit a 52-week high of Rs 1,152.40 on 9 December 2013. The stock had hit a 52-week low of Rs 678.10 on 28 August 2013.
The stock had outperformed the market over the past one month till 20 December 2013, surging 8.74% compared with the Sensex's 2.15% rise. The scrip had also outperformed the market in past one quarter, jumping 25.33% as against Sensex's 4.03% rise.
The large-cap company has equity capital of Rs 185.21 crore. Face value per share is Rs 2.
L&T Infrastructure Development Projects (L&TIDPL) has submitted an application to the Foreign Investment Promotion Board (FIPB) seeking approval in relation to a proposed foreign direct investment in L&T IDPL. Subject to completion of the due diligence processes and necessary agreement on governance and other terms of the transaction with the investor, there is a contemplation of an initial infusion of Rs 1000 crore into L&T IDPL, followed by a second tranche of Rs 1000 crore (or such higher amount as may be agreed between L&T and investor) after twelve months from the date of initial investment. The proposed transactions are subject to various factors, and may or may not be completed, and parties have not yet entered into any agreement, L&T said in a statement. In the meantime, shareholders and any other investors are reminded to exercise caution when dealing in the company's securities, pending definitive announcement(s) from the company, if any, L&T said.
L&T IDPL is primarily engaged in public-private partnership projects in India, with business interests spread across sectors involving roads and bridges, ports, metro rail, wind energy and power transmission lines. It has experience in identifying and assessing viability of projects, achieving financial closure, project management, operations and maintenance of infrastructure assets across various sectors as well as divestiture.
L&T's net profit declined 14.1% to Rs 977.51 crore on 10% growth in net sales to Rs 14509.51 crore in Q2 September 2013 over Q2 September 2012.
L&T is a $14 billion technology, engineering, construction, manufacturing and financial services conglomerate, with global operations.
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