L&T IDPL seeks FIPB nod for raising up to Rs 2,000 crore

NEW DELHI: Engineering and construction major Larsen and Toubro (L&T) today said its subsidiary L&T IDPL has sought FIPB approval for raising up to Rs 2,000 crore through FDI.

L&T was evaluating avenues to monetise certain assets of the subsidiary, L&T Infrastructure Development Projects (L&T IDPL), including by way of an initial public offering (IPO).

"The company is engaged in discussion with a large global institutional investor for a proposed acquisition stake in L&T IDPL," L&T said in a BSE filing.

"...there is a contemplation of an initial infusion of Rs 1,000 crore into L&T IDPL, followed by a second tranche of Rs 1,000 crore after 12 months from the date of initial investment," it added.

Foreign Investment Promotion Board (FIPB) is an inter- ministerial panel for approving Foreign Direct Investment (FDI) across sectors.

L&T has been looking at raising money in the subsidiary through various avenues including an IPO and listing in Singapore of selected road assets of L&T IDPL, through a business trust.

It has also started negotiations with a few sovereign wealth funds to dilute stake in L&T IDPL, but nothing has materialised so far.

L&T IDPL is engaged in public-private-partnership projects in India with business interests in areas like roads and bridges, ports, metro rail, wind energy and power transmission lines.