L&T, one of India’s largest conglomerates, known for its infrastructure projects, saw its shares drop in the intraday trade on Monday, February 24. This came to pass after the company reportedly landed a major USD 1.5 billion deal with Saudi Arabia-based Saudi Aramco.
L&T’s Aramco Deal
Aramco awarded an EPC (engineering, procurement, and construction) contract to L&T.
This is the first phase in the creation of the Carbon Capture & Storage (CCS) hub. Aramco reportedly signed this deal with the company’s Energy Hydrocarbon arm, Larsen and Toubro Energy Hydrocarbon (LTEH).
This USD 1.5 billion project is part of one of the world’s largest oil producers’s Accelerated Carbon Capture & Sequestration (ACCS) initiative. This initiative aims to reduce carbon emissions.
This is the first phase in the creation of the Carbon Capture & Storage (CCS) hub. Aramco reportedly signed this deal with the company’s Energy Hydrocarbon arm, Larsen and Toubro Energy Hydrocarbon (LTEH).
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When it comes to the deal, it is interesting to note, that the company is yet to release an exchange filing on the matter.
This major project, however, does not appear to have positively placated the company shares at Dalal Street.
L&T Shares On Monday
The company shares started the day, lower than Friday’s closing at Rs 3,289.70. The company shares eventually entered green territory, making some gains, reaching the high of Rs 3,325.50 per share.
This surge in the company shares did not last for long, as the company fortunes declined as the day’s trade progressed further.
At the time of writing, the company shares declined by a total of 0.45 per cent or Rs 14.85. This took the overall value of the company shares to Rs 3,300.25 per piece.
This comes after a period of relative gains. The company shares have seen an overall rise of 3.02 per cent or Rs 96.75 in the past five trading sessions.
It is to be noted that the markets at large have been trading with deep cuts, with Sensex and Nifty crumbling in the day’s trade.
