L&T gains after construction arm bags 'major' orders

Larsen & Toubro (L&T) rose 1.84% to Rs 822.50 after the power transmission & distribution business of L&T Construction has bagged 'major' orders in India and abroad.

L&T said that in Kuwait, an order has been awarded to upgrade substations and related power facilities in KNPC's Mina Al Ahmadi oil refinery.

The business has won a 400 kV Grid Station order in Oman which will be a crucial element in the Sultanate's major transmission initiative to interconnect the grids in the south and north with the PDO Area.

In Egypt, an order to design, supply, construct & commission a 220 kV gas insulated substation has been bagged from a reputed client.

The renewable arm of the business has won large EPC orders on the domestic and international fronts to establish solar photovoltaic plants totaling more than 500 MW.

An order has been won to strengthen the urban high tension (HT) distribution network in Chennai with addition of Ring Main Units and Feeder Remote Terminal Units on a total turnkey basis. Also, fully automated, unmanned 33 kV Gas Insulated Substations will be established at select locations.

Another order has been secured to supply and install medium voltage capacitor banks with related accessories under different discoms in Uttar Pradesh.

Additional orders have been received in ongoing substation, transmission line and renewable projects, the company said in a regulatory filing made during market hours today.

As per L&T's project classification, the valuation of the contracts won lies between Rs 5,000 to Rs 7,000 crore.

The L&T scrip extended gains for the fourth day. The stock has added 6.16% in four sessions from its recent closing low of Rs 774.75 recorded on 1 April 2020.

On Friday, 3 April 2020, depository institutions CDSL and NSDL notified changes to the foreign investment limits in individual companies, raising the same to their respective sectoral caps. Higher foreign investment limits in Indian companies would lead to MSCI (Morgan Stanley Capital Investment) to raise Indian companies' weightage on its indices. L&T is one of the stocks which could see an increase in MSCI weightage.

Moreover, L&T's board will meet today, 9 April 2020, to consider raising funds, including through issue of debt securities.

L&T is an Indian multinational engaged in technology, engineering, construction, manufacturing and financial services.

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