L&T offloads entire stake in L&T Infra Development Projects Ltd

Larsen & Toubro Restricted (L&T) exited L&T Infrastructure Growth Initiatives Restricted, a three way partnership with Canada Pension Plan Funding Board (CPP Investments). Infrastructure Yield Plus Technique, backed by Edelweiss Options, bought L&T’s stake within the JV. Its stake now stands at 100%.

L&T owned 51 % within the JV, whereas CPP Investments holds 49 % stake. 

The portfolio includes seven (7) working roads and one (1) energy transmission asset in India, spanning 4,400 lane-km and 960 ckms respectively. 

With this acquisition, the infrastructure platform will scale as much as 26 property, comprising 5,000 lane-km of roads, 1,800 ckms of energy transmission property and 813 MWp of renewables with cumulative annual income of Rs 3,000 crore, Edelweiss Options stated in a press release.

The deal is in keeping with L&T’s technique to exit non-core companies for decreasing publicity to the asset-heavy developmental initiatives portfolio, enhancing its return on fairness (RoE).

Sreekumar Chatra, Managing Director – Infrastructure Yield Technique, Edelweiss Options, stated, “This acquisition is a big milestone for our enterprise. These property have a confirmed monitor report of revenues & operations, that are geographically dispersed and have lengthy residual life. With our robust asset administration and working capabilities, we’re assured of making additional worth within the portfolio, and scale it up additional.” 

Subahoo Chordia, Head – Actual Belongings Technique, Edelweiss Options, stated, “Our Actual Belongings Technique has witnessed robust curiosity from throughout investor segments like world pension funds, home establishments, UHNIs, household places of work and corporates, indicating choice of LPs to speculate with managers having a robust administration with many years of business expertise… With our robust platform capabilities, we are going to proceed to supply bespoke capital options for asset monetization and recycling of capital for Infrastructure builders. With this acquisition, we may have a high-quality diversified infrastructure portfolio of 26 property throughout 13 states, making us a number one infrastructure investor in India.” 

Edelweiss Options is without doubt one of the largest Options platforms in India with an AUM of $6.3 billion (over Rs 52,100 crore) as of December 2023.