Now, L&T has no major stake in the concession subsidiary, L&T IDPL, which started as a joint venture. In the beginning, L&T and Canada Pension Plan Investment Board (CPPI) had a 51: 49 partnership in the company.

The development is a significant step towards the execution of the company’s strategic Lakshya 2026 plan, said, DK Sen, Whole-time Director and Senior Executive Vice-President for Developmental Projects. He also added that the project has housed L&T IDPL with an established alternative platform like Edelweiss Alternatives.

“The transaction is a win-win for both L and T and Edelweiss. It will release growth capital for the L and T Group. Also, it will provide Edelweiss Alternatives with access to a good quality portfolio of assets,” he added

L&T IDPL is known for performing high-value PPP-model projects in India. Meanwhile, Edelweiss Alternatives focuses on quality operating infrastructure assets in core sectors of power transmission, renewable energy, and highways.

The shares of L&T were purchased by a portfolio company of Infrastructure Yield Plus II, an infrastructure fund managed by Edelweiss Alternatives. Post this acquisition, Edelweiss Alternatives will become one of the leading infrastructure investors in India as it will have a diverse portfolio containing 26 assets across 13 states, according to a statement.

The acquisition will be complete only after the closing of certain conditions including receipt of applicable regulatory and other approvals. Gross proceeds to L and T and CPP investments from the sale would be about ₹27,234 million before closing adjustments and other terms of the transaction.

According to reports, Canada Pension Plan Investment Board (CPP Investments) announced on December 17 that it has agreed to sell its 49 per cent stake in L&T Infrastructure Development Projects Limited.

(With inputs from ANI)