Funding structure at L&T infrastructure finance company limited

L&T group consider funding structure as the primitive process which essentially guides them to allot the funds according to the projects which are about to liberate under their segments (Sorn 2006).

As it is a not a government group like IIFC acquire much of its funds for project through equity related investments such as,

  1. Preference Shares
  2. Hybrid Debt
  3. Equity Shares
  4. Equity Instruments

Such equity funding financing facility promotes the group to acquire sufficient funds to host the project. As it is government supportive organization many investors in market are interested to invest on the project which have been hosting by L&T group. In the process of obtaining investment in group clients of L&T group provide enough assistance and trust to their investors and maintain the effective relation between the investors for developing the infrastructure in different regions.  In general investors interested in funding the group must able to meet the necessary policies which are determined by the higher authorities of the group. Company mainly acquires funds through equity policies from the private sectors. Such financing process for projects helped the group to maintain its standards in performing the actual project process (Equity investments, 2010)

Further L&T group mainly funds the projects according to their priorities in the segments. The different priority segments projects which is most probably funded by L&T group are,

  • Transmission & sharing Projects
  • self-governing Thermal & Renewable Energy Projects
  • miniature and average Sized Hydroelectric Projects
  • incorporated Coal / Lignite withdrawal Projects
  • Captive & Merchants Power Plants
  • National highway projects of India
  • State projects
  • Rural and urban projects
  • Port development and handling equipments projects
  • Bulk transporter and tankers
  • Rail passageway expansion
  • Purchase of Wagons and Containers
  • Railway overpass
  • Sewerage
  • Garbage Management

References

  • Sorn L S (2006), Stock market capitalization and corporate governance in India, Oxford University press, Oxford.
  • Equity investments (2010), [internet] available at URL <http://www.ltinfra.com/equity-investments.aspx> [accessed on April 17,2012]
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