L&T divests its entire stake of 51% in L&T Infrastructure Development Projects

/ 2 min read

The divestment is in line with the company’s strategy of reducing its exposure to the non-core asset-heavy developmental projects portfolio.

Fortune India
Credits: Fortune India

The engineering major Larsen & Toubro has divested its entire stake of 51% in L&T Infrastructure Development Projects Limited (L&T IDPL) and its subsidiaries to a portfolio company of Infrastructure Yield Plus II, which is managed by Edelweiss Alternatives, the company said in a regulatory filing on Monday. The divestment is in line with the company’s strategy of reducing its exposure to the non-core asset-heavy developmental projects portfolio. 

ADVERTISEMENT

L&T IDPL is a joint venture between Larsen & Toubro Limited and Canada Pension Plan Investment Board (CPP Investments) holding 51% and 49% shares, respectively. “The transaction is subject to completion of customary closing conditions including receipt of applicable regulatory and other approvals. Gross proceeds to L&T and CPP investments from the sale would be approximately ₹ 27,234 million before closing adjustments and other terms of the transaction,” the company said in a statement. 

As per the regulatory filing, in FY 2020-21, L&T IDPL’s consolidated revenue was ₹128 crore which constitutes around 0.08% of the consolidated revenue of L&T for FY2021-22. The company has a net worth of ₹2,521 crore as on March 31, 2022. Ahmedabad-Maliya Tollway Limited, L&T Deccan Tollways Limited, L&T Interstate Road Corridor Limited, L&T Rajkot-Vadinar Tollway Limited, L&T Samakhiali Gandhidham Tollway Limited, L&T Sambalpur Rourkela Tollway Limited, L&T Transportation Infrastructure Limited, Panipat Elevated Corridor Limited, PNG Tollway Limited, Vadodara Bharuch Tollway Limited, L&T IDPL Indvit Services Limited, and Kudgi Transmission Limited are the subsidiaries of L&T IDPL. 

D K Sen, whole-time director and senior executive vice president (developmental projects) at Larsen & Toubro said, “This development is a significant step towards the execution of our strategic Lakshya 2026 plan and houses L&T IDPL with Edelweiss Alternatives, an established and reputed alternatives platform with a better strategic fit. The transaction is a win-win for both L&T and Edelweiss. It will release growth capital for the L&T Group. Also, it will provide Edelweiss Alternatives with access to a good quality portfolio of assets.”

The company is also planning to sell Nabha Power Project in Punjab as well as its entire stake in Hyderabad metro projects by FY23 in a phased manner, according to reports. The company has a 90% stake in Hyderabad metro project and plans to divest 51% in the first phase. 

Recommended Stories

Following this development, the shares of Larsen & Toubro slumped 0.30% at ₹2,167. On Monday, the share price of Larsen & Toubro opened in line with the closing price of the previous session at ₹2,173.80. It hit an intra-day high of ₹2,176. In the past three months, the company’s stocks have surged 13.53%. The company’s market capitalization stood at ₹3.04 lakh crore with as many as 21,021 shares changing hands on the Bombay Stock Exchange as against two weeks average of 0.77 lakhs. The company hit a 52-week high of ₹2,210 on December 16 this year, and a 52-week low of ₹1,456 on June 20 this year.        

Fortune India is now on WhatsApp! Get the latest updates from the world of business and economy delivered straight to your phone. Subscribe now.

40 Under 40 2025
View Full List >