Plans QIP of $600 million

Larsen and Toubro (L&T), the engineering and construction behemoth, plans to raise about $600 million (approximately Rs 2,800 crore) through the qualified nstitutional placement (QIP) route. The QIP issue would be completed within 12 months, the company said in a notice to its shareholders.

The board will consider a special resolution in its annual general meeting (AGM) on August 28 for raising funds not exceeding $600 million, or Rs 2,800 crore, by private placement of shares with qualified institutional buyers.

The price and timing of L&T’s QIP issue is not yet known. The proceeds will be used to fund the expansion plans of the company. L&T has a Rs 2,000-2,500 crore capex plan for this financial year. L&T Finance, a subsidiary of the engineering firm, earlier announced its plan to raise Rs 1,000 crore through a non-convertible debenture (NCD) issue. The NCDs, with a face value of Rs 1,000, would aggregate to Rs 500 crore with an option to retain over-subscription for another Rs 500 crore.