Larsen & Toubro (L&T) on Wednesday announced the divestment of 100% stake in the 3x33 MW (99 MW) run of the river hydroelectric power plant owned by its subsidiary L&T Uttaranchal Hydropower to Renew Power Services.
The EPC major said that the divestment is in line with the declared focus of divesting non-core assets and improving shareholder value.The sale consideration amount is Rs 985 crore. The transaction is subject to completion of customary closing conditions and is expected to take place before 30 September 2021.
D K Sen, whole-time director of Larsen & Toubro said, "This development is a significant step in our effort to unlock the value of some of our power development assets to streamline and allocate capital to create long term value for our shareholders. It represents our strategic effort to increase focus on our core strengths and exit others to move towards becoming a more asset-light organization."
L&T is an Indian multinational engaged in EPC Projects, hi-tech manufacturing and services.
The engineering and construction major's consolidated net profit soared 141.2% to Rs 1,556.18 crore on a 38% jump in revenue from operations to Rs 29,334.73 crore in Q1 June 2021 (Q1 FY22) over Q1 June 2020 (Q1 FY21).
Shares of L&T were down 1.14% at Rs 1,569 on BSE.
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