L&T Infrastructure Development Projects Ltd has transferred its stake in five subsidiary companies to Indinfravit Trust through the Infrastructure Investment Trust (Invit) route for a consideration of Rs 909 crore.
The company has transferred stake in five subsidiary companies to Indinfravit Trust through the infrastructure investment trust (InvIT) route on May 4, 2018.
"Accordingly, these companies cease to be subsidiary companies of the company," Larsen & Toubro said in a filing to BSE.
The five subsidiaries are Krishnagiri Thopur Toll Road Ltd (KTTL), L&T BPP Tollway Limited (BPP), Devihalli Hassan Tollway Limited (DHTL), Krishnagiri Walajahphet Tollway Limited (KWTL) and Western Andhra Tollways Limited (WATL).
"The consideration for the portfolio of five entities is Rs 909.08 crore (approx.). In addition, loans if any provided by L&TIDPL and its subsidiaries to the five entities will be repaid," the filing said.
The process, it said, is likely to be completed once the permission to list is received from stock exchanges on or about May 9.
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"The buyer is Indinfravit Trust an infrastructure investment trust registered with SEBI. While L&TIDPL is the sponsor of the said Trust under the relevant regulations of SEBI, the Trust is not a part of promoter group or group company of L&TIDPL," the filing said.
InvITs that work like mutual funds are launched to garner funds from a number of investors to put in assets that give cash flow over a period of time.