Larsen & Toubro Ltd.

The $12-billion engineering major Larsen & Toubro is scouting to acquire majority stake in road projects worth around Rs 1,000 crore each to boost its portfolio. L&T, which has interests in the roads space as a developer as well as a contractor for projects, would make the acquisition through subsidiary L&T Infrastructure Development Project (L&T IDPL). L&T IDPL plans to acquire 74% in National Highways Authority of India (NHAI) projects being developed by others companies. It would consider projects that do not dilute the company's internal rate of return which is around 18-20% on the current projects.

Cash-strapped infrastructure developers are looking at inducting equity investors, mostly at a subsidiary or special purpose vehicle level, to finance their growth. In September, HCC sold 14.5% stake in subsidiary HCC Concessions, which is a holding company for build-operate-transfer road projects, for Rs 240 crore to global investment firm Xander Group.