L&T rose 2.15% to Rs 1,074.25 at 11:18 IST on BSE after the company said Foreign Investment Promotion Board has approved foreign direct investment deal between L&T Infrastructure Development Projects and Canada Pension Plan Investment Board.
The company made the announcement during trading hours today, 24 February 2014.
Meanwhile, the BSE Sensex was down 5.30 points, or 0.03%, to 20,695.45.
On BSE, so far 1.05 lakh shares were traded in the counter, compared with an average volume of 2.19 lakh shares in the past one quarter.
The stock hit a high of Rs 1,076.75 and a low of Rs 1,051 so far during the day. The stock hit a 52-week high of Rs 1,152.40 on 9 December 2013. The stock hit a 52-week low of Rs 678.10 on 28 August 2013.
The stock had outperformed the market over the past one month till 21 February 2014, rising 3.98% compared with the Sensex's 2.59% fall. The scrip had also outperformed the market in past one quarter, rising 10.89% as against Sensex's 2.33% rise.
The large-cap company has an equity capital of Rs 185.38 crore. Face value per share is Rs 2.
With reference to the earlier announcement in December 2013, L&T announced that Foreign Investment Promotion Board (FIPB) vide its press release dated 20 February 2014 has approved the proposal for issuance of equity shares, compulsorily convertible preference shares (CCPS)/compulsorily convertible debentures (CCD) of Rs 1000 crore by L&T Infrastructure Development Projects (L&T IDPL) to a wholly-owned subsidiary of CPP Investment Board (USRE III), Inc. which is under incorporation.
The investment is subject to finalisation and execution of definitive agreements with the investor and receipt of necessary regulatory and other approvals, L&T said.
L&T IDPL said in December that it had filed an application with FIPB seeking approval for proposed foreign direct investment (FDI) by a large global investor without disclosing any further details. The company is engaged in discussions with a large global institutional investor for the proposed acquisition of a stake in L&T Infrastructure Development Projects, the company said in the December statement.
Subject to completion of due diligence processes and necessary agreement on governance and other terms of the transaction with the investor, there is a contemplation of an initial infusion of Rs 1000 crore into L&T IDPL, followed by a second tranche of Rs 1000 crore (or such higher amount as may be agreed between the company and the investor) after 12 months from the date of the initial investment (subject to further regulatory approvals at such time where required), the company said in the December statement.
L&T IDPL is a subsidiary of L&T and is primarily engaged in public private partnership project in India with business interests sprread across sectors involving roads and bridges, ports, metro rail, wind energy and power transmission lines. It has experience in identifying and assessing viability of projects, achieving financial closure, roject management, operations and maintenance of infrastructure assets across various sectors as well as divestures.
Canada Pension Plan Investment Board (CPPIB) is a professional investment management organization that invests the funds not needed by the Canada Pension Plan (CPP) to pay current benefits on behalf of 18 million Canadian contributors and beneficiaries. In order to build a diversified portfolio of CPP assets, CPPIB invests in public equities, private equities, real estate, infrastructure and fixed income instruments. Headquartered in Toronto, with offices in London, Hong Kong, New York City and S Paulo, CPPIB is governed and managed independently of the Canada Pension Plan and at arm's length from governments. At 30 September 2013, the CPP Fund totalled C$192.8 billion.
L&T's recurring profit after tax rose 12% to Rs 1136 crore on 12% growth in gross revenue to Rs 14534 crore in Q3 December 2013 over Q3 December 2012. L&T said the results are excluding the performance of the hydrocarbon business segment, which has been transferred to a wholly-owned subsidiary of the company with effect from 1 April 2013. Consequently, the figures for the previous periods have been restated to make a like-to-like comparison, L&T said.
L&T's order inflow rose 21% to Rs 21722 crore in Q3 December 2013 over Q3 December 2012, shrugging off prevailing weak investment climate. L&T said the international order inflow during the quarter at Rs 8237 crore, more than doubled on the back of major orders secured in the Middle East. The order backlog rose 13% year-on-year at Rs 171184 crore as on 31 December 2013. International order book constituted 15% of the total order book. L&T has pruned its order inflow forecast for the year ending 31 March 2014, to 15% from 20% earlier due to the poor investment climate in India.
L&T is a $14 billion technology, engineering, construction, manufacturing and financial services conglomerate, with global operations.
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