Larsen & Toubro tackles floor price hurdle with QIP/CB combination

The Indian infrastructure play raises $600 million, of which two-thirds comes from the sale of new shares at a 1.1% discount. Separately, Welspun increases its recent CB to $150 million.

Larsen Toubro LT, India's largest engineering and construction firm, yesterday raised $600 million from a combination of a qualified institutional placement QIP and five-year convertible bonds, which allowed it to get around the hurdles imposed by India's floor price regulations. The QIP and the CB were both launched with fixed terms and placed with a small group of investors.

By structuring the convertible bond with terms attractive enough to appeal to investors, including a conversion premium of just...

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