L-;T selling 8 highways to Edelweiss Infrastructure

25 Jul 2022 , 09:17 AM

According to news reports, engineering giant Larsen & Toubro (L&T) is selling its eight operational highway properties, which the company built and managed, to Edelweiss Infrastructure Yield Plus, an infrastructure fund, for Rs7,000 crore.

The Nationwide Highways Authority of India (NHAI) and the Securities and Alternate Board of India (Sebi) are yet to approve the transaction before it can be made public, reports continued. One asset for energy transmission is also included in the sale.

The sale is a component of L&T’s asset-light strategy, which has seen the company sell off several non-core properties. Concessions from L&T Infrastructure Growth Tasks Ltd (L&T IDPL) are also included in that list. Sekura Roads and Sekura Vitality are the two operational platforms for the Edelweiss infrastructure fund. Each is being utilized in this buyout as an auto. The motorway concessions and energy transmission undertaking have an equity value of Rs3,000 crore.

The transportation infrastructure and energy transmission assets of L&T are contained in 51:49% subsidiary L&T IDPL. The arm’s 49% partner is the Canadian pension fund Canada Pension Plan Funding Board (CPPIB).

In 2018, L&T IDPL floated the IndInfravit Belief infrastructure funding investment trust, enlisting Allianz Capital Partners, the Canada Pension Plan Funding Board, and OMERS Infrastructure as major unit holders. Currently, IndInfravit is the owner of 13 active highway concessions totaling around 5,000 km in 5 states.