L&T inches up after CPPIB invests Rs 1000 crore in L&T IDPL

L&T rose 0.74% to Rs 1,292.55 at 10:45 IST on BSE after the company announced that CPPIB has completed its second tranche investment into the company's subsidiary by subscribing to compulsorily convertible preference shares.

The announcement was made after market hours yesterday, 15 December 2015.

Meanwhile, the S&P BSE Sensex was up 185.25 points or 0.71% at 25,499.16

On BSE, so far 63,163 shares were traded in the counter as against average daily volume of 2.36 lakh shares in the past one quarter.

The stock hit a high of Rs 1,298.55 and a low of Rs 1,286.30 so far during the day. The stock had hit a record high of Rs 1,892.95 on 4 March 2015. The stock had hit a 52-week low of Rs 1,265.50 on 15 December 2015.

The stock had underperformed the market over the past one month till 15 December 2015, falling 3.68% compared with Sensex's 1.13% fall. The scrip had also underperformed the market in past one quarter, sliding 17.6% as against Sensex's 1.5% fall.

The large-cap company has equity capital of Rs 186.24 crore. Face value per share is Rs 2.

L&T announced that Canada Pension Plan Investment Board (CPPIB) has completed its second tranche investment of Rs 1000 crore into the company's subsidiary L&T Infrastructure Development Projects (L&T IDPL) by subscribing to compulsorily convertible preference shares of L&T IDPL.

It may be recalled that L&T and CPPIB had in June 2014, entered into a definitive agreement whereby CPPIB through its Singapore-based wholly owned subsidiary, had committed to make an investment of Rs 2000 crore into L&T IDPL in two tranches. The first tranche investment of Rs 1000 crore was made in December 2014.

L&T's consolidated net profit rose 15.6% to Rs 995.90 crore on 10.6% growth in net sales to Rs 23393.22 crore in Q2 September 2015 over Q2 September 2014.

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.

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