L&T advances as CPPIB invests Rs 1000 crore in L&T IDPL

Larsen & Toubro gained 2.29% to Rs 1,503.95 at 09:18 IST on BSE after the company and Canada Pension Plan Investment Board completed the definitive investment agreement entered into in June 2014.

Meanwhile, the S&P BSE Sensex was up 301.26 points or 1.13% at 27,011.39

On BSE, so far 19,715 shares were traded in the counter as against average daily volume of 1.78 lakh shares in the past one quarter.

The stock hit a high of Rs 1,504.75 and a low of Rs 1,491 so far during the day. The stock had hit a record high of Rs 1,774.70 on 9 June 2014. The stock had hit a 52-week low of Rs 951.60 on 10 January 2014.

India's largest engineering and construction company by sales has an equity capital of Rs 185.77 crore. Face value per share is Rs 2.

Larsen & Toubro (L&T) and Canada Pension Plan Investment Board (CPPIB) have completed the definitive investment agreement entered into in June 2014. The agreement was made between L&T and a wholly owned subsidiary of CPPIB for investment into L&T's subsidiary L&T Infrastructure Development Projects (L&T IDPL). The announcement was made after market hours yesterday, 17 December 2014.

CPPIB, through a subsidiary, has made an initial investment of Rs 1000 crore in L&T IDPL on 16 December 2014, by way of subscription to compulsorily convertible preference shares.

A second tranche of Rs 1000 crore or such higher amount as may be agreed between L&T IDPL and CPPIB's subsidiary, will be invested after 12 months from the date of the initial investment, subject to any required regulatory approvals at such time, L&T said in the statement. This is the first direct private investment by a Canadian pension fund into an Indian infrastructure development company, it added.

L&T's consolidated net profit rose 6.9% to Rs 861.75 crore on 10.3% growth in total income to Rs 21373.88 crore in Q2 September 2014 over Q2 September 2013.

L&T is a major Indian multinational engaged in technology, engineering, construction, manufacturing and financial services, with global operations. Its products and systems are marketed in over 30 countries worldwide. A strong, customer-focused approach and the constant quest for top-class quality have enabled L&T to attain and sustain leadership in its major lines of business for over seven decades. L&T Construction is a brand of Larsen & Toubro.

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