Shares of Larsen & Toubro gained nearly 1 percent at the open on the NSE, a day after the conglomerate announced that it had completed the sale of its entire stake in L&T Infrastructure Development Projects Limited (LTIDPL). At 9:20am, the stock was trading at Rs 3,777.
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In a release on April 11, L&T announced that it had completed sale of the joint venture with Canada Pension Plan Investment Board (CPP Investments). Through the sale, L&T’s 51 percent and CPP Investments’ 49 percent stakes have been acquired by Epic Concesiones Private Limited which is an investee company of Edelweiss Infrastructure Yield Plus Strategy and is currently managed by Edelweiss Alternative Asset Advisors Limited (EAAA). L&T IDPL portfolio includes eight roads (4,900 lane-km) and one 960 ckm power transmission asset.
Also read: L&T, CPP investments, sell entire stake in L&T IDPL to Edelweiss Alternatives-backed platform
This is the latest move by the conglomerate as a part of its strategy to "exit non-core businesses for reducing exposure to the asset-heavy developmental projects portfolio, enhancing its return on equity (RoE)".
The company is yet to announce the date for its Q4 earnings. In Q3, L&T, which is an engineering and construction conglomerate, reported a 15.5 percent year-on-year (YoY) increase in net profit to Rs 2,947.4 crore. Revenue from operations for the reporting period increased 18.8 percent to Rs 55,127.8 crore against Rs 46,389 crore in the previous fiscal.
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