The Hindu Business Line : L&T may raise Rs 3,000 cr via GDR

New plans: Mr A.K. Naik, Chairman, L&T, and Mr Deosthalee, Whole-time Director and CEO, at the company’s annual general meeting in Mumbai on Friday. —

Our Bureau

Mumbai, Aug. 24 Engineering and construction company Larsen and Toubro will raise $700 million (about Rs 3,000 crore) in the next three to four months.

It will most likely be through issue of Global Depository Receipts, Mr. A M Naik, Chairman, told presspersons at the end of the company’s AGM here on Friday: “We require about Rs 1,500 crore for constructing a shipyard, which could either be in Gujarat or Chennai, and for all businesses – engineering, construction and financial services.”

Mr. Naik said that towards next year-end L&T Infotech would make an initial public offer and L&T Infrastructure Holdings and L&T Finance would follow suit three to four years later.

Mr. Naik reiterated that L&T was only a promoter of Dubai Aluminium Company with a 26 per cent holding and that aluminium was not its core business. It was looking to execute a Rs.4,000-5,000 crore turnkey operation in the project and would exit after substantial value addition was achieved.

The company was keen to get into SEZs and was looking at a sector- specific one where its shipyard would come up, besides an ITES one at Baroda.

Speaking at the AGM, Mr. Naik said the company was well positioned to exploit the opportunities.

The public private partnership model was going to be the way forward for infrastructure projects in the country. L&T Infrastructure Finance Company Ltd had initiated funding in the segment.

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