L&T gains on entering into definitive investment agreement with CPPIB's arm

23 Jun 2014

Larsen & Toubro (L&T) is currently trading at Rs. 1656.90, up by 10.05 points or 0.61% from its previous closing of Rs. 1646.85 on the BSE.

The scrip opened at Rs. 1651.30 and has touched a high and low of Rs. 1662.05 and Rs. 1650.05 respectively. So far 16127 shares were traded on the counter.

The BSE group 'A' stock of face value Rs. 2 has touched a 52 week high of Rs. 1774.70 on 09-Jun-2014 and a 52 week low of Rs. 678.10 on 28-Aug-2013.

Last one week high and low of the scrip stood at Rs. 1707.40 and Rs. 1635.10 respectively. The current market cap of the company is Rs. 152780.00 crore.

The institutions and non-institutions held 55.07% and 42.25% stake in the company, respectively.

Larsen & Toubro (L&T) has entered into a definitive investment agreement with a wholly-owned subsidiary of Canada Pension Plan Investment Board (CPPIB), CPP Investment Board Singaporean Holdings 1 (CPPIBSH), for an initial investment tranche of Rs 1,000 crore, to be invested by CPPIBSH into the company’s subsidiary L&T Infrastructure Development Projects (L&T IDPL).

This will be followed by a second tranche of Rs 1,000 crore, or such higher amount as may be agreed between the company and CPPIBSH, after twelve months from the date of the initial investment subject to any required regulatory approvals at such time. CPPIBSH will invest in preference shares of L&T IDPL, compulsorily convertible into equity shares by 2018 at a valuation to be determined as per a mutually agreed process. Post conversion, CPPIBSH will hold a minority stake in the equity capital of L&T IDPL.

This would be the first direct private investment by a Canadian pension fund into an Indian infrastructure development company. The completion of the transaction and receipt of funds is subject to fulfillment of customary closing conditions for transactions of this nature and procuring necessary approvals from relevant government authorities and regulators.

 

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