Larsen & Toubro Sells Entire Stake in Hyderabad Metro Rail for ₹1,461.47 Crore
Larsen & Toubro to divest entire stake in L&T Metro Rail (Hyderabad) for Rs 1,461.47 crore
The Economic Times
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Larsen & Toubro Ltd. has agreed to sell its entire stake in L&T Metro Rail (Hyderabad) Limited to Hyderabad Metro Rail Limited for ₹1,461.47 crore (approximately $176 million USD). This divestment, expected to complete by June 30, 2026, will result in L&T Metro Rail ceasing to be a subsidiary of L&T.
- 01Larsen & Toubro sells its entire stake in L&T Metro Rail (Hyderabad) for ₹1,461.47 crore.
- 02The transaction is expected to be completed by June 30, 2026.
- 03L&T Metro Rail (Hyderabad) Limited reported a revenue of ₹1,100.13 crore in FY25.
- 04The divestment will release L&T from its Corporate Guarantee regarding LTMRHL's debt.
- 05Hyderabad Metro Rail Limited plans to refinance the existing debt of LTMRHL post-transaction.
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Larsen & Toubro Ltd. (L&T) has finalized the sale of its entire stake in L&T Metro Rail (Hyderabad) Limited for ₹1,461.47 crore (approximately $176 million USD). This decision, formalized through a Share Purchase Agreement with Hyderabad Metro Rail Limited, a Government of Telangana Enterprise, will result in L&T Metro Rail ceasing to be a subsidiary of L&T. In the fiscal year 2025, L&T Metro Rail (Hyderabad) reported a revenue of ₹1,100.13 crore, contributing 0.43% to L&T's overall revenue, with a net worth of ₹807.49 crore. The divestment is projected to be completed by June 30, 2026. Following the transaction, Hyderabad Metro Rail Limited intends to refinance the existing debt of L&T Metro Rail (Hyderabad), and the Corporate Guarantee and Letter of Comfort provided by L&T concerning this debt will be released.
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The divestment will allow Hyderabad Metro Rail Limited to refinance existing debts, potentially improving the financial stability of the metro operations in Hyderabad.
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