L&T on the buzz

Larsen & Toubro is on the buzz in the morning trades today. The stock is currently up over 1% or around Rs.12/share at Rs.1073.40, with an intra day high at Rs.1079.

The stock is up after the company submitted an application for approval of FDI to the Foreign Investment Promotion Board (FIPB), for L&T Infrastructure Development Projects (L&TIDPL). The company, in the Press statement issued has stated that there is a contemplation of an initial infusion of Rs 1000 crore into L&T IDPL, followed by a second tranche of Rs 1000 crore (or such higher amount as may be agreed between L&T and investor) after twelve months from the date of initial investment. The proposed transactions are subject to various factors, and may or may not be completed, and parties have not yet entered into any agreement.

This L&T IDPL is the same company which L&T said it was proposing an IPO in the company and get it listed on the Singapore stock exchange. Looks like this unit will see a lot of action in the coming few days, the moment the FIPB approval is in.