L&T to divest stake in infra arm by end of fiscal

Engineering major Larsen & Toubro (L&T) plans to divest its stake in L&T Infrastructure Development Projects (IDPL) by the end of the fiscal. L&T IDPL has been a major player in public private partnership (PPP) projects space with interests in roads and bridges, ports, metro rail and emerging sectors such as transmission lines, water and railways.

“At the moment diluting stake in IDPL is the main focus. We need to close the transaction that is our stated objective. We will have long-term strategic partners in that portfolio.

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Our objective is to complete the transaction by the end of the year,” L&T chief financial officer R Shankar Raman told reporters here while announcing the second quarter earnings.

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However, he did not reveal further details. The company currently handles a portfolio of infrastructure assets worth Rs 45,000 crore comprising 19 road projects, three port projects and the Hyderabad metro project.

The company also plans to dilute its stake in the Dhamra project. “The Dhamra Port in Orissa is a part of the several concessions that IDPL holds. They have by and large done with first phase of investments.

We have done some debt refinancing to improve the viability of the port. We should now consolidate and make sure the port breaks even and then decide the future course of action,” Raman added.

PTI