Introduction
L&T Infrastructure Development Projects Ltd (IDPL), the operations arm of L&T, has sold eight road assets worth over Rs 7000 crore to Edelweiss. The company had earlier sold four such assets in December 2018 for Rs 6392 crore. These include Karad-Chiplun, Katra-Banihal, Karad-Patas, Virar-Alibaug Expressway, and Gurgaon Faridabad Road managed by L&T IDPL.
The eight road assets that L&T is selling have a combined length of over 600 km.
The eight road assets that L&T is selling have a combined length of over 600 km. They include four roads maintained by L&T IDPL, two by L&T PHL, and two others by L&T Infrastructure Development Projects Ltd (IDPL).
The company is also looking to sell its transmission project involving the acquisition of land for construction of the proposed 765-km long 500 VK direct current transmission project to Edelweiss Fund for Rs 7000 crore.
They include four roads maintained by L&T IDPL, two by L&T PHL, and two others by L&T Infrastructure Development Projects Ltd (IDPL).
The deal is expected to fetch L&T IDPL around Rs 5,000 crore.
The sale will also help Edelweiss, which has been looking at monetizing its holdings in L&T since last year, raise funds for future projects.
Edelweiss had earlier sold its entire stake in three highways units—National Highway Authority of India Ltd (NHAI), National Highways Development Project Ltd (NHDPL), and Bharatmala Pariyojana Ltd—for over Rs 1 lakh crore to GIC Reinsurance Corporation of Singapore and Nippon Life Insurance Co.
The roads in the deal include Karad-Chiplun, Katra-Banihal, Karad-Patas, Virar-Alibaug Expressway, and Gurgaon Faridabad Road managed by L&T IDPL.
The assets in the deal include:
• Karad-Chiplun (16.5 km)
• Katra-Banihal (15.6 km)
• Karad-Patas (10.9 km)
• Virar-Alibaug Expressway (61 km)
The sale of these roads will help L&T focus on its core business, which is road construction and maintenance, as well as operating these roads on a revenue basis.
Transco and IRRPL are unlisted entities with transmission line assets.
Transco and IRRPL are unlisted entities with transmission line assets. Transco was incorporated in 2007 as an independent power producer by L&T IDPL, a subsidiary of L&T Power. IRRPL was incorporated in 2008 as a joint venture between L&T Power and IFCI Limited (a wholly owned subsidiary of IL & FS Financial Services Ltd).
L&T IDPL is a subsidiary of L&T Power, which also has interests in other power generation companies such as Mangalore Electric Supply Company Ltd (MESCOM) and Mahatma Gandhi Power Generation Corporation Ltd (MPPGCL).
Edelweiss picks up L&T's 8 road assets at valuation of Rs 7000 crore
L&T is selling its eight operational road assets that the company built and operated to Edelweiss Infrastructure Yield Plus, an infrastructure fund managed by Edelweiss NSE -1.22 % Alternative Asset Advisors, for an enterprise valuation of Rs 7,000 crore, said people aware of the development.
The eight roads are located in Uttar Pradesh (UP), Andhra Pradesh (AP), Odisha, and Telangana states. The deals will be completed within two weeks after they get approval from state governments concerned as per regulatory guidelines," said one of the people cited above.