L&T Shares Surge For The 6th Straight Day On Securing 2 Construction Contracts

Surging for the sixth consecutive trading day, shares of Larsen and Toubro (L&T) rose as much as 5.3 percent in trade to Rs 911.90 per share on Wednesday on securing 2 major government construction orders.

Between 7 April and 15 April, the stock has gained nearly 18 percent from Rs 774.65 to Rs 911.90 per share. The Indian stock markets were closed on 10 and 14 April.

In a stock exchange filing on Wednesday, L&T said that its Heavy Civil Infrastructure Business has secured two contracts to build Regional Rapid Transit System (RRTS) Infrastructure from National Capital Region Transport Corporation (NCRTC) in Uttar Pradesh. The contract falls under the 'significant' category, meaning that its value ranges between Rs 1,000 - 2,500 crore.

On 13 April, the company had informed of securing three Engineering Procurement Construction (EPC) Water Management orders from the Karnataka Urban Infrastructure Development and Finance Corporation (KUIDFC) to 'Design, Build, Operate, Maintain and Transfer of water supply systems in Hubballi - Dharwada, Kalaburagi and Belagavi cities of Karnataka.'

This order falls in the 'large' category, meaning that its value ranges between Rs 2,500 - 5,000 crore.

Further, last week, L&T said that its board has approved long-term borrowing of up to Rs 9,000 crore, either through external commercial borrowings, term loans, non-convertible debentures or any other instrument as may be appropriate.