L&T board approves a proposal to raise funds worth Rs 7,500 crore

L&T added, these funds would be raised in the form of external commercial borrowings, term loans, non-convertible debentures, or any other instrument as may be appropriate

Engineering conglomerate Larsen & Toubro (L&T) on Tuesday said the company’s board had approved a proposal to raise Rs 7,500 crore.

This will be in the form of external commercial borrowing, term loans, non-convertible debentures, etc.

The company’s board also approved appointing MSKA & Associates statutory auditors for five years, subject to approval from shareholders.

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L&T said the company’s current statutory auditors, Deloitte Haskins and Sells LLP, would complete its tenure next year.

Debt-based fundraising has been L&T’s usual course. In FY23, according to the company’s Annual Report, it issued and allotted on a private-placement basis unsecured, rated, listed, redeemable non-convertible debentures worth Rs 2,000 crore. In the same Annual Report, L&T also proposed to raise long-term debt in FY24 to refinance almost Rs 4,500 crore of maturing debt and to fund its proposed capital expenditure.

 

L&T’s group borrowing as of March 2023 was at Rs 1.18 trillion compared to Rs 1.23 trillion the year before. The group’s gross debt-to-equity ratio as of December was 1.23.

At the end of FY23, L&T was a debt-free company at a standalone level, after considering cash and cash equivalents during the year, the company said in its last Annual Report.