L&T is on cash piling spree.Only recently we saw L&T offloading its stake in the erstwhile Satyam Computer Services for around $27 million.Interesting to note that it was only a part of the stake that L&T holds in Satyam.
Looks like L&T has gone in for another round of cash influx by offloading its stake in BIAL(Bangalore Airport Limited).L&T has sold its 17% stake in BIAL to GVK Power for Rs 686 crore.With this acquisition, GVK will now hold 29% stake in BIAL. The deal values BIAL at around Rs 4,040 crore.
GVK has been gunning hard to up its stake in BIAL and has also managed to buy around 12% from Zurich Airport Authorities.
L&T after this offloading looks all set to be sitting on huge piles of cash.The one time gains could be stupendous once the YOY results come out.Moreover, the extra capital should provide L&T with sufficient capital to expand it core function areas.L&T has been eyeing the nuclear energy sector with keen interest and has also announced a joint venture with NPCL.
With truck loads of cash reserves and a huge order book as always, L&T looks all set to outperform its 25% growth in Q2 FY10.However, L&T has a lot of business interest in Dubai and the middle east.With the Dubai crisis looming large, the extra cash might come in handy to ride the storm.
Do you also see a cash rich healthy balance sheet for L&T for the forthcoming quarter?