L&T classifies INR 100B order as major

L&T classifies INR 100B order as major

L&T Announces Major Order in Hydrocarbon Sector Amid Capital Raise

Larsen & Toubro (L&T) has secured a significant contract for its Hydrocarbon Onshore business, marking a strategic advancement in India's petrochemical sector. The order, awarded by Bharat Petroleum Corporation Ltd (BPCL), involves the engineering, procurement, construction, and commissioning of a Linear Low-Density Polyethylene/High-Density Polyethylene (LLDPE/HDPE) Swing Unit with two trains of 575 kilotonnes per annum (KTPA) capacity each at Bina, Madhya Pradesh according to L&T's announcement. This project, to be executed on a Lump Sum Turnkey basis, will be India's largest LLDPE/HDPE Swing Unit, enhancing BPCL's Bina Petrochemicals & Refinery Expansion Project. The initiative aligns with the Government of India's Aatmanirbhar Bharat vision, aiming to bolster domestic polymer production and reduce reliance on imports.

L&T's Deputy Managing Director, Subramanian Sarma, emphasized the order's significance in strengthening the company's balance sheet and reinforcing its expertise in downstream hydrocarbon EPC projects. The project is expected to contribute to BPCL's goal of expanding refinery capacity from 7.8 million metric tonnes per annum (MMTPA) to approximately 11 MMTPA, while establishing a comprehensive petrochemical complex.

Separately, L&T Finance Limited has completed a ₹50 crore private placement of subordinated non-convertible debentures (NCDs) to bolster its Tier II capital. The 10-year instruments carry a 7.75% annual coupon rate, with the first payment due December 31, 2026, and maturity scheduled for December 31, 2035 according to financial reports. The issuance, structured to support regulatory capital requirements, includes a green shoe option allowing for an additional ₹150 crore, potentially raising up to ₹200 crore in total. The NCDs, listed on NSE's NTRP platform, reflect the company's strong credit profile and compliance with SEBI regulations.

These developments underscore L&T's dual focus on expanding its infrastructure capabilities and strengthening its financial services arm, positioning the conglomerate to capitalize on India's growing energy and manufacturing demands.

Word count: 300