Foreign investment promotion board (FIPB) has approved L&T Infra's FDI Proposal worth Rs 1,000 crore. Canada Pension Plan Investment Board (CPPIB) would be making an initial investment of Rs 1,000 crore in L&T Infrastructure Development Projects (L&TIDPL), a unit of Larsen and Toubro (L&T), via equity shares, compulsorily convertible preference shares and/or compulsorily convertible debentures. However, the quantum of stake to be sold by L&T IDPL would be determined at a later stage owing to lack of decision on pricing front. Further, after the initial investment, CPPIB would probably invest a further Rs 1,000 crore at a later date.
CPPIB, which manages $201.5 billion in funds, has a strategic alliance with Piramal Enterprises for providing structured debt financing to residential projects across India’s major urban centres. It also has a strategic alliance with the Shapoorji Pallonji Group to acquire foreign direct investment (FDI)-compliant, stabilized office buildings in India’s major metropolitan centres.
Larsen & Toubro (L&T) is a technology, engineering, construction and manufacturing company. It is one of the largest and most respected companies in India's private sector. More than seven decades of a strong, customer-focused approach and the continuous quest for world-class quality have enabled it to attain and sustain leadership in all its major lines of business.