L&T shares rise 3% on ₹12,000 crore fundraise; Up 10% in five sessions

Shares of Larsen & Toubro gained nearly 3 per cent on Monday after the engineering conglomerate's board approved a fund-raising plan of ₹12,000 crore through multiple debt-based instruments.

 

L&T's stock rose as much as 2.96 per cent during the day to ₹3,517 per share. The stock pared gains to trade 2.18 per cent higher at ₹3,490.45 apiece, compared to a 0.54 per cent advance in Nifty 50 as of 9:45 AM. 

 

Shares of the company extended gains to their fifth day while they have fallen 3.49 per cent this year, compared to a 0.7 per cent fall in the benchmark Nifty 50. Shares of the construction major have risen as much as 10 per cent in the last five session. Larsen & Toubro has a total market capitalisation of ₹4.78 trillion, according to BSE data. 

 

The company's board approved a long-term borrowings of up to ₹12,000 crore, including through external commercial borrowings, term loans, non-convertible debentures or any other instrument as may be appropriate. Further, L&T also announced the appointment of Subramanian Sarma, whole-time director and president, energy as the deputy managing director and president of the company with effect from April 2, until February 2028. 

 

Last week, the Buildings & Factories (B&F) vertical of the firm secured a large order (ranging ₹2,500 crore - ₹5,000 crore) from the Brigade Group to construct residential and commercial towers in Hyderabad and Chennai. This accounts for the largest residential project that the business has so far received from a private customer, the company said.

 

Larsen & Toubro is a $27 billion Indian multinational enterprise engaged in EPC Projects, Hi-Tech Manufacturing, and Services, operating across multiple geographies. 

 

The company reported a steady 14 per cent growth rate in net profits for October-December 2024 even though it missed Street estimates. For the quarter, L&T reported consolidated net profit of ₹3,358.8 crore, up from ₹2,947.36 crore a year ago. Profits were supported by a 17 per cent growth rate in net sales of ₹64,667 crore in the same period.

 

L&T’s order books outstanding as of December 2024 were at ₹5.64 trillion, its highest ever. The company’s new orders won in the quarter hit an all-time quarterly high of ₹1.16 trillion, and were up 53 per cent from a year ago.