Larsen & Toubro To Sell Its Entire 51 Per Cent Stake In L&T IDPL To Edelweiss Alternatives In Strategic Move

Larsen & Toubro (L&T) has signed an agreement to sell its 51 per cent stake in L&T Infrastructure Development Projects Limited (L&T IDPL) to a portfolio company of Infrastructure Yield Plus II, an infrastructure fund managed by Edelweiss Alternatives.

This move is in line with L&T's strategy of reducing its exposure to non-core, asset-heavy developmental projects.

L&T IDPL is a joint venture between L&T and the Canada Pension Plan Investment Board, with L&T holding 51 per cent and the CPP Investments holding 49 per cent of the shares.

The company has been a pioneer in the Public-Private-Partnership model of infrastructure development in India, and has developed several notable projects in the roads, bridges, ports, and urban infrastructure sectors.

Edelweiss Alternatives focuses on investing in quality operating infrastructure assets in sectors such as power transmission, renewable energy, and highways.

Upon completion of this acquisition, the platform will have a diversified portfolio of 26 assets across 13 states, making it a leading infrastructure investor in India, the company said in a statement.

The transaction is subject to customary closing conditions and regulatory approvals, and the gross proceeds from the sale for L&T and CPP Investments are expected to be around Rs 27.234 billion.

D K Sen, Whole-time Director and Senior Executive Vice President of Developmental Projects, said that this development is a significant step towards the execution of L&T's Lakshya 2026 plan and will provide both L&T and Edelweiss Alternatives with benefits.

It will release growth capital for L&T and provide Edelweiss Alternatives with access to a high-quality portfolio of assets, Sen added.