JOIN USInfrastructure major Larsen and Toubro (L&T) has sought shareholders nod to raise up to USD 600 million (about Rs 3,200 crore) through issuing securities.
"The Board be and is hereby authorised to offer, issue and allot in one or more tranches, to investors, whether Indian or foreign, including foreign institutions...that the total amount raised through issue of securities shall not exceed USD 600 million or Rs 3,200 crore," the company said in its notice for the annual general meeting.
It said the mode of the fund raising will be decided later and will be need based. The company plans to use the proceeds on expansion.
L&T said: "The company requires adequate capital to meet the needs of growing business. While it is expected that the internal generation of funds would partly finance the need for capital and debt raising would be another source of funds, it is thought prudent for the company to raise a part of the funding requirements for the said purposes..."
The company, which yesterday announced disappointing first quarter results, had 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 per cent or by about Rs 2,100 crore.
It has reported 12.46 per cent decline in its standalone net profit at Rs 756.03 crore and a modest 5 per cent growth in net sales at Rs 12,555.06 crore. Its interest outgo also increased by about 7.39 per cent to Rs 245.28 crore in the last quarter.
L&T's performance, during the last quarter, was primarily impacted by the slowdown in domestic economy as the company witnessed under-utilisation of capacities in several business segments, including power, mining, hydrocarbons and metallurgical and material handling.
Company shares, which had tanked by about 8 per cent yesterday due to disappointing results, today rose marginally by 0.07 per cent to close at Rs 902.55 apiece on the BSE.