L&T Completes LTIDPL Stake Sale, Stocks Edge Up Amid Strategic Shift

12 Apr 2024 , 01:39 PM

Larsen & Toubro (L&T) shares gained nearly 1% on the NSE following the completion of the sale of its entire stake in L&T Infrastructure Development Projects Limited (LTIDPL).

At the time of writing, the stocks was trading at ₹3742.10 which is a 0.30% gain than the previous close.

The sale, announced on April 11, involved L&T’s 51% stake and Canada Pension Plan Investment Board’s (CPP Investments) 49% stake being acquired by Epic Concesiones Private Limited, an investee company of Edelweiss Infrastructure Yield Plus Strategy managed by Edelweiss Alternative Asset Advisors Limited (EAAA).

LTIDPL’s portfolio includes eight roads covering 4,900 lane-km and one 960 ckm power transmission asset.

This move is part of L&T’s strategy to exit non-core businesses, reducing exposure to asset-heavy developmental projects to enhance return on equity (RoE).

The conglomerate is yet to announce the date for its Q4 earnings. In Q3, L&T reported a 15.5% year-on-year (YoY) increase in net profit to ₹2,947.4 Crore, with revenue from operations increasing by 18.8% to ₹55,127.8 Crore.

L&T Technology Services (LTTS), a subsidiary of Larsen & Toubro, provides engineering research and development (ER&D) services, with interests in automotive, embedded system and semiconductor engineering, industrial internet of things, manufacturing plant engineering, and medical engineering.

LTTS is listed on the National Stock Exchange and the Bombay Stock Exchange, with offices across India, the United States, Europe, and Asia, including a subsidiary company, Esencia, based in San Jose, California.

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