Shares of L&T have been on an uptrend since news of the company signing a major contract with the Indian government made headlines.
What Happened: The Ministry of Defence on Feb 8. announced signing a contract with the construction giant for building 41 modular bridges. The cost of the deal is pegged at over ₹2,585 Crore.
In another major development, the company has reportedly shelved its plan to obtain a banking license for its financial services arm. A report in the Hindu, quoted the company's CFO, Shankar Raman, stating that the company is no longer interested in a banking licence as they realised that the RBI is not inclined towards handing out banking licenses to large industrial groups "which are incidentally large consumers of banking products and services."
This comes just a few days after the company's Non-executive chairman AM Naik told Mint that he will be stepping down as the company's chairman in October this year to make way for SN Subrahmanyan, the company's current CEO and MD.
Naik in a separate interview with an international publication, Nikkei Asia said that the company is looking to push past infrastructure as it ramps up branching into high-tech sectors such as operating data centers and developing software.
Price Action: Shares of L&T were up 1.83% to close at ₹2,203.50 on Monday.
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