"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..." L&T said in the media report.
The announcement of raising the fund was made during the annual general meeting of the company which said that the total amount raised through issue of securities shall not exceed $600 million or Rs 3,200 crore.
Moreover, the company said that the mode of the fund raising will be decided later and will be need based. The company plans to use the proceeds on expansion.
However, the Q1 FY13 results of the company were disappointing as the net profit dropped 12.5 per cent, falling well short of street expectations as the challenging business environment, rupee depreciation and cut-throat competition squeezed the engineering major's margins.