Larsen & Toubro Ltd.

Engineering major Larsen & Toubro (L&T) is reportedly mulling a plan to raise between Rs 2000 crore - Rs 2500 crore by combining operational road projects of its infrastructure development arm L&T IDPL into a separate entity, which later could be listed overseas through a business trust model.

This proposal, which was separately mooted by a European as well as a Japanese bank to the company, is based on the increasing popularity of the model amongst global financial investors who are exploring for high quality operating yield assets in infrastructure, real estate and renewable energy.

Recently, the company announced disappointing first quarter results, with a total debt of about Rs 10,939 crore as on June, 2013, while its gross debt to equity ratio was at 0.37. Between April and June, debt levels of L&T have risen by nearly 24% or by about Rs 2,100 crore.