Construction major, Larsen & Toubro’s (L&T), subsidiary L&T Shipbuilding (LTSB), is planning to raise up to Rs 3,000 crore through non-convertible debentures (NCDs). It will be using these NCD proceeds to repay its existing bank credit.
L&T Ship Building’s shipyard at Katupalli, North of Chennai, is scheduled to begin commercial operations in the current quarter. The company is a 97:3 joint venture between L&T and Tamil Nadu Industrial Development Corporation.
The company was set up to develop a shipyard for the construction and repair of defence and commercial vessels and to set up a minor port with an annual container handling capacity of 1.2 million twenty-foot equivalent units.