Larsen & Toubro Limited has informed the Exchange about Disposal of stake held by the Company in L&T Metro Rail (Hyderabad) Limited
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L&T has entered into a Share Purchase Agreement to sell its entire 100% stake in L&T Metro Rail (Hyderabad) Limited to Hyderabad Metro Rail Limited, a Government of Telangana Enterprise. The transaction values the subsidiary at ₹1,461.47 crores, with completion expected by June 30, 2026. The subsidiary contributed only 0.43% (₹1,100.13 crores) of L&T's consolidated revenue and 0.83% (₹807.49 crores) of consolidated networth for FY25. Upon closing, the subsidiary will cease to be part of L&T, and the corporate guarantees and letters of comfort issued by L&T for the subsidiary's debt will be released.
This sale removes a relatively small but capital-intensive metro rail subsidiary from L&T's portfolio. Shareholders may view this positively as it reduces exposure to a project with modest returns and releases L&T from associated debt guarantees. The ₹1,461 crore cash inflow could strengthen L&T's balance sheet or fund higher-return opportunities.