L&T Share Price Jump 3% on ₹12,000 Crore Fundraise, Gain 10% in 5 Days

Larsen & Toubro (L&T) shares gained nearly 3% on Monday after the company’s board approved a plan to raise ₹12,000 crore through various debt-based instruments. The stock reached an intraday high of ₹3,517 before settling at ₹3,490.45, up 2.18%. In comparison, the Nifty 50 index was up 0.54% at 9:45 AM.

Stock Performance and Market Cap

L&T share price has been on an upward trend, gaining 10% in the last 5 sessions. However, the stock fell 3.49% in 2024, while the Nifty 50 declined by 0.7%. As per BSE data, the company’s market capitalisation stands at ₹4.78 trillion, reflecting its strong position in the engineering and construction sector.

₹12,000 Crore Fundraising Plan

The company’s board approved long-term borrowings of up to ₹12,000 crore through instruments such as external commercial borrowings, term loans, and non-convertible debentures. This move is expected to strengthen L&T’s financial position and support future expansion.

Leadership Appointment

L&T also announced the appointment of Subramanian Sarma, who currently serves as a whole-time director and president of the energy division, as the company’s new deputy managing director and president. His tenure will begin on April 2, 2025, and will continue until February 2028.

New Large-Scale Order Wins

Last week, L&T’s Buildings & Factories (B&F) vertical secured a significant contract worth between ₹2,500 crore and ₹5,000 crore from Brigade Group. The project involves constructing residential and commercial towers in Hyderabad and Chennai. The company stated this is the largest residential project it has ever received from a private client.

Financial Performance and Record Order Book

L&T reported a 14% rise in net profit for the October-December 2024 quarter, though it fell short of market expectations. The company’s net profit stood at ₹3,358.8 crore, up from ₹2,947.36 crore a year earlier. This was driven by a 17% growth in net sales, which reached ₹64,667 crore.

The company’s order book reached an all-time high of ₹5.64 trillion as of December 2024. Additionally, L&T secured new orders worth ₹1.16 trillion in the quarter, marking a 53% increase from the previous year and setting a new quarterly record.

Conclusion

L&T’s recent fundraising approval, major contract wins, and steady financial performance highlight its strong market presence. Despite a decline in stock value this year, the company’s growing order book and expansion plans suggest a positive long-term outlook.

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