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Chennai, Jun 7 (UNI) Larsen&Toubro Limited (L&T) today declared a 1:1 bonus issue for its existing shareholders.

The was in deference to the longstanding expectation of shareholders, a company release said here.

This would increase L&T's capital base to a level that would better reflect its current scale of operations and also add depth.

It will eventually create a larger market float thus increasing liquidity and turnover of L&T shares on the stockmarket.

The company's earlier bonus issue was declared in 1986 in the ratio of 3:5.

The presence of the company in almost all the core sectors of the economy had made investment in the L&T stock a surrogate investment in the growing infrastructure sector in India, the release claimed.

The company also stood to gain substantially from the capex plans of companies setting up capacities to meet growing demand in sectors such as petroleum exploration and refining, steel, cement, power and petrochemicals.

It was also playing an increasing role in supplying equipment to defence and aerospace sectors, it said.

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