Larsen & Toubro divests entire 51% stake in L&T Infrastructure Development Projects

Larsen & Toubro (L&T) announced on Monday that it is divesting its entire stake of 51 per cent in L&T Infrastructure Development Projects to the portfolio company of Infrastructure Yield Plus II, an infrastructure fund managed by Edelweiss Alternatives.

The transaction is subject to customary closing conditions including regulatory and other approvals. Proceeds from this sale would amount to Rs 2,723 crore before closing adjustments and other terms of the transaction.

With this, L&T will divest the entire stake in the subsidiary in line with its strategy of reducing exposure to non-core asset heavy developmental projects portfolio.

DK Sen, Whole-time Director and Sr. Executive Vice President (Development Projects) 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.”

L&T IDPL is a joint venture between Larsen & Toubro Limited and Canada Pension Plan Investment Board (CPP Investments) with 51 and 49 per cent share respectively. L&T IDPL is known for its public-private-partnership (PPP) model of development in India. It was involved in development of infrastructure projects by private sector players in partnership with central and state governments.

The company has developed infra projects across key sectors such as roads, bridges, ports and urban infrastructure.

After this acquisition, Edelweiss Alternatives will have a diversified portfolio of 26 assets across 13 states.

Also read: Larsen & Toubro Infotech, Mindtree become one merged entity