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

Larsen & Toubro

Larsen & Toubro (L&T) announced that it is divesting its entire 51% stake in L&T Infrastructure Development Projects to Infrastructure Yield Plus II, an infrastructure fund managed by Edelweiss Alternatives.

The transaction is subject to standard closing conditions, which include regulatory and other approvals. Before closing adjustments and other transaction terms, the proceeds from this sale would be Rs 2,723 crore.

L&T will divest its entire stake in the subsidiary as part of its strategy to reduce exposure to non-core asset-heavy development projects. “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,” said DK Sen, Whole-time Director and Sr. Executive Vice President (Development Projects). The transaction benefits both L&T and Edelweiss. It will free up capital for the L&T Group’s expansion. It will also give Edelweiss Alternatives access to a high-quality asset portfolio.”

Larsen & Toubro IDPL is a 50/50 joint venture between Larsen & Toubro Limited and the Canada Pension Plan Investment Board (CPP Investments). L&T IDPL is well-known in India for its public-private partnership (PPP) development model. It was involved in the development of infrastructure projects by the private sector in collaboration with the federal and state governments. The company has built infrastructure projects in key sectors such as roads, bridges, ports, and urban infrastructure. Edelweiss Alternatives will now have a diverse portfolio of 26 assets spread across 13 states as a result of this acquisition.