The construction division of the infrastructure to construction conglomerate Larsen & Toubro has won a "mega" order for its Heavy Civil Infrastructure business.

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L&T Construction will construct the 135.45 km stretch MAHSR- C3 package, which is part of the Mumbai-Ahmedabad High-Speed Rail Project, also known as the MAHSR Bullet Train project.

Although L&T has not specified the order value as per standard practice, it classifies orders which have a value in excess of Rs 7,000 crore as a "mega" order.

As part of the project, L&T will construct viaducts, stations, major river bridges, depots, tunnels, earth structures, stations and other auxiliary works.

This is the second-largest package that L&T has won in the MAHSR project, according to whole-time director and Senior EVP of the Civil Infrastructure business, SV Desai. With this package, L&T will be executing 92 percent of the mainline between Shilphata in Maharashtra and Ahmedabad in Gujarat.

Just a couple of weeks earlier, L&T had won India's largest defence acquisition project, valued at nearly EUR 5 billion. The company had signed a teaming agreement for Project 75 (India) submarine projram.

Shares of Larsen & Toubro are also in focus after the company announced on Thursday that it will hold a board meeting on July 25 to consider a buyback of equity shares and a special dividend for its shareholders.

The board had earlier approved a Rs 9,000 crore share buyback in 2018, but the proposal was rejected by market regulator SEBI.

"Since the ratio of the aggregate of secured and unsecured debts owed by the company after buy-back (assuming full acceptance) would be more than twice the paid-up capital and free reserves of the company based on consolidated financial statements", the buyback offer is not in compliance with the Companies Act and Sebi norms, the regulator had said in a letter to the company back then.

Shares of Larsen & Toubro are trading 3 percent higher at an all-time high of Rs 2,564.

First Published:Jul 21, 2023 9:58 AM IST