L&T supported by report infra unit in talks to sell stake

Shares in Larsen & Toubro Ltd are up marginally, outperforming falls in the Nifty, after The Economic Times reported that its infrastructure unit is looking to raise Rs 2,500 crore by selling up to a 20% stake to investors.

The report, citing three people familiar with the negotiations, says L&T Infrastructure Development Projects is already in talks with potential buyers.

An L&T spokesman declined to comment.

"We view this news as a material positive for L&T, given that L&T IDPL has been a major overhang on the stock on back of huge investment commitments and limited cash inflow," brokerage Edelweiss said in a note seen by Reuters.