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L&T to Sell its Entire Stake in L&T Infrastructure Development Projects

Larsen & Toubro (L&T) will be exiting the infrastructure development sector being catered through L&T Infrastructure Development Projects Ltd. (IDPL) by signing an agreement to sell its entire stake in the company. L&T IDPL is a joint venture between L&T and Canada Pension Plan Investment Board (CPP Investments) in a 51-49% ratio respectively.

L&T will be selling its entire stake (51%) to Epic Concesiones Pvt. Ltd., a portfolio company of Infrastructure Yield Plus II, which is an infrastructure fund managed by Edelweiss Alternatives. This information was given by L&T in a stock filing dated 19th December 2022. The company has stated that this sale will help it shift focus to its core business by reducing its non-core project development portfolio.

CPP Investments had also announced its intentions of stake sale in L&T IDP earlier. The approximate proceeds from this sale will be Rs. 2,723.4 crore for L&T and CPP investments.

Commenting on this development, Mr. D.K. Sen, Whole-time Director and Sr. Executive Vice President (Developmental Projects), L&T, said, “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.”

Necessary approvals are awaited for the closure of the sale.