Edelweiss Alternatives-backed platform acquires L&T IDPL for ₹6,000 crore


New Delhi: Epic Concesiones Pvt Ltd, a portfolio company of Infrastructure Yield Plus Strategy which is managed by Edelweiss Alternative Asset Advisors Ltd., has acquired 100% equity stake in L&T Infrastructure Development Projects Limited (L&T IDPL) for an enterprise value of about 6,000 crore.

“The proposed acquisition will be for an enterprise value of approximately 6,000 crore, along with its operating team that has a proven track record in operational excellence,” according to a press release.

The portfolio comprises eight roads and one power transmission asset in India, spanning 4,900 lane-km and 960 ckms, respectively. The transaction is subject to customary closing conditions including applicable regulatory and other approvals.

“Following this acquisition, the infrastructure platform will scale up to 26 assets with cumulative annual revenue of nearly 2,700 crore. The platform will be a diverse mix of power transmission and substations, renewables and highway assets spread geographically,” Edelweiss Alternatives said in a statement.

“This acquisition is in line with the infrastructure yield strategy to generate regular distributions for investors by acquiring quality operating infrastructure assets with strong cash flows and unlocking value through active asset management,” it added.

“We look forward to acquiring these high-quality assets built by L&T, a renowned engineering and construction major. These assets have a proven track record of operations, are geographically dispersed and have long residual life, which is consistent with our investment strategy. We believe our asset management and operating capabilities, together with that of L&T IDPL, will help scale up this platform,” said Sreekumar Chatra, managing director, Infrastructure Yield Strategy.

“Asset monetization and recycling capital holds the key to value creation and development in Infrastructure. We will continue to provide solutions to construction companies and developers to recycle capital to fund their growth. On completion of this acquisition, there will be a high-quality diversified infrastructure portfolio of 26 assets across 13 states, making us a leading infrastructure investor in India,” said Subahoo Chordia, Head – Infrastructure Funds, Edelweiss Alternatives.

Edelweiss Infrastructure Yield Strategy has 9,500 crore of infrastructure assets under its domain with focus on investing in infrastructure sectors such as power transmission, renewable power, and highways among others.

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