Shares of Larsen and Toubro gained 2.3 intraday Thursday after the subsidiary of the engineering and construction major received first tranche of investment from the Canada Pension Plan Investment Board (CPPIB).
CPPIB, through a subsidiary, made an initial investment of Rs 1,000 crore in L&T Infrastructure Development Projects (L&T IDPL) on December 16 by way of subscription to compulsorily convertible preference shares, said the company in its filing to the exchange.
The shares will be compulsorily convertible into equity shares by 2018.
L&T and CPPIB completed the definitive investment agreement entered into in June 2014. The agreement was made between L&T and a wholly-owned subsidiary of CPPIB, for investment into L&T IDPL.
CEO and MD, K Venkatesh (of L&T IDPL) in an interview said a second tranche of Rs 1,000 crore (or such higher amount may be agreed between L&T IDPL and CPPIB's subsidiary) will be invested after 12 months from the date of the initial investment.
He said as of now the agreement has been signed for Rs 2000 crore and it could go higher depending on business prospects and market conditions.
When asked if the company had any plans of listing IDPL, he confirmed that they had no immediate plans of listing in the short to medium term.
CPPIB, through a subsidiary, made an initial investment of Rs 1,000 crore in L&T Infrastructure Development Projects (L&T IDPL) on December 16 by way of subscription to compulsorily convertible preference shares, said the company in its filing to the exchange.
The shares will be compulsorily convertible into equity shares by 2018.
L&T and CPPIB completed the definitive investment agreement entered into in June 2014. The agreement was made between L&T and a wholly-owned subsidiary of CPPIB, for investment into L&T IDPL.
CEO and MD, K Venkatesh (of L&T IDPL) in an interview said a second tranche of Rs 1,000 crore (or such higher amount may be agreed between L&T IDPL and CPPIB's subsidiary) will be invested after 12 months from the date of the initial investment.
He said as of now the agreement has been signed for Rs 2000 crore and it could go higher depending on business prospects and market conditions.
When asked if the company had any plans of listing IDPL, he confirmed that they had no immediate plans of listing in the short to medium term.
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