11 Apr , 2024 By : Debdeep Gupta
Industrial conglomerate Larsen & Toubro has completed the sale of its entire stake in L&T Infrastructure Development Projects Limited (LTIDPL), a joint venture with the Canada Pension Plan Investment Board (CPP Investments).
L&T’s 51 percent and CPP Investments’ 49 percent stakes have been acquired by Epic Concesiones Private Limited, an investee company of Edelweiss Infrastructure Yield Plus Strategy, managed by Edelweiss Alternative Asset Advisors Limited (EAAA), L&T said in a regulatory filing on April 11.
The deal is in line with L&T’s strategy to exit non-core businesses to reduce exposure to the asset-heavy developmental projects portfolio, enhancing its return on equity (RoE).
"With this acquisition, the infrastructure platform will scale up to 26 assets, comprising around 5,000 lane-km of roads, around 1,800 km of power transmission assets, and around 813 MWp of renewables with cumulative annual revenue of Rs 3,000 crore," Edelweiss said in a separate statement.
Epic Concesiones is acquiring the stake at an enterprise value of Rs 6,000 crore, the companies said in 2022.
L&T IDPL's portfolio comprises eight roads, spanning 4,900 lane-km and one 960 ckm power transmission asset.
On April 10, the L&T stock closed at Rs 3,758.80 on the National Stock Exchange, down 0.70 percent.
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