Larsen & Toubro raised $600 million (Rs 2,880 crore) on Thursday through a mix of foreign currency convertible bonds ($200 million) and a qualified institutional placement ($400 million). While the QIP was made at one per cent discount to Wednesday’s closing price of Rs 1,677.40, the FCCBs were issued at a 15 per cent premium. The company diluted 1.9 per cent stake through the issue. The FCCBs have been issued for five years and can be converted any time. However, given the premium of 15 per cent, an investor will have to hold the bonds for some time to book profits.
The funds raised would help the company bid for infrastructure and ultra mega power projects (UMPPs) announced by the Government. L&T’s expertise lies in executing large turnkey power projects and it now wants to explore opportunities on its own. Though it had bid for a few power projects earlier, it was not successful.
The money raised will be kept as a corpus to bid for future power projects. The company proposes to invest between Rs 30,000 crore and Rs 50,000 crore in the next five years in power projects. About Rs 5,000-10,000 crore can be managed through internal accruals.
The hydropower projects will come up either in Himachal Pradesh or Arunachal Pradesh, while the company has zeroed in on
| Company Name | CMP |
|---|---|
| Larsen & Toubro | 3482.50 |
| Rail Vikas Nigam | 421.65 |
| NCC | 272.20 |
| KEC International | 992.10 |
| Kalpataru Projects | 1143.85 |
| View more.. | |
MoneyWorks4Me rating and ranking of funds for SIP is available to subscribers only. Moneyworks4Me is not a rating and ranking agency, however it is required that users have a way of selecting funds and building a Portfolio. The method used by it are described below to enable users to understand the logic behind the rating and ranking Subscriber will find more details on this in the various content made available from time to time. In case you need more please write to besafe@moneyworks4Me.com
MoneyWorks4Me rates and ranks mutual funds based on the following data-driven system:
Funds ranking in screeners: Performance Consistency and Quality are two parameters used for ranking funds for SIP. The ranking as follows GG, GO, GR, OG, OO, OR, RG, RO and RR.
With the same color-coded funds, the one with the higher Average 3-year rolling returns (over 5 to 10 years), the number that appears in the Performance tag, ranks higher.
Here is the summary:
The third tag Upside Potential is not relevant for SIP. It is relevant for lumpsum investments in Mutual Funds.
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