Ongoing divestment, healthy order inflows positive for Larsen & Toubro

Analysts expect a 12-15 per cent upside from current levels

Larsen & Toubro (L&T) has entered into an agreement to sell its stake in L&T IDPL (Infrastructure Development Projects) and its subsidiaries to EPIC Concesiones, a special purpose vehicle (SPV) created for the transaction. The SPV is held by the Infrastructure Yield Plus II, an infra fund managed by Edelweiss Alternative Asset Advisors. The total consideration is Rs 6,000 crore.

This is a part of L&T’s strategic plan of divesting non-core businesses, given limited growth opportunities. It has already exited general insurance, Katuppali Port and E&A business. In the next stage, L&T plans to divest its stake in Nabha Power