L&T to sell entire 51% stake in L&T Infrastructure Development Projects

L&T Infrastructure Development Projects Limited (L&T IDPL) is a joint venture between Larsen & Toubro (L&T) and Canada Pension Plan Investment Board (CPP Investments), holding 51% and 49% shares respectively.

L&T on 16 December 2022 signed an agreement to sell its entire 51% stake in L&T IDPL, along with its subsidiaries, to Epic Concesiones. Post transaction, L&T IDPL will cease to be subsidiary of L&T.

Epic Concesiones is a special purpose vehicle created for the said transaction which is a part of the Infrastructure Yield Plus II, an infrastructure fund managed by Edelweiss Alternative Asset Advisors.

Meanwhile, CPP Investments will also be selling its 49% stake. CPP Investments initially invested into L&T IDPL in 2014.

Gross proceeds to L&T and CPP Investments from the sale would be approximately Rs 2723.40 crore, before closing adjustments and other terms of the transaction.

L&T IDPL's revenue during FY 2021-22 was Rs 128 crore, constituting around 0.08% of the consolidated revenue of L&T for the FY 2021-22 and its net worth was Rs 2521 crore as on 31 March 2022.

L&T IDPL has 13 subsidiaries, which includes Ahmedabad-Maliya Tollway, L&T Deccan Tollways, L&T Interstate Road Corridor, L&T Rajkot-Vadinar Tollway, L&T Samakhiali Gandhidham, L&T Sambalpur Rourkela, L&T Transportation Infrastructure, L&T-Chennai Tada Tollway, Panipat Elevated Corridor, PNG Tollway, Vadodara Bharuch Tollway, LTIDPL Indvit Services and Kudgi Transmission.

These entities will cease to be subsidiaries of L&T pursuant to the sale of stake in L&T IDPL.

L&T is an Indian multinational engaged in EPC projects, hi-tech manufacturing and services. It operates in over 50 countries worldwide. The EPC major's consolidated net profit rose 22.5% to Rs 2,228.97 crore on 23% rise in net sales to Rs 42,762.61 crore in Q2 FY23 over Q2 FY22.

The L&T scrip fell 0.14% to settle at Rs 2173.80 on Friday, 16 December 2022.

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