Larsen & Toubro has officially executed a Share Purchase Agreement to sell its entire shareholding in L&T Metro Rail (Hyderabad) Limited to the Hyderabad Metro Rail Limited, an enterprise of the Government of Telangana. The divestment, valued at ₹1,461.47 crores, is expected to reach completion by June 30, 2026. Following this transaction, the entity will cease to be a subsidiary of the company.
Strategic Divestment
Larsen & Toubro has entered into a definitive agreement to offload its stake in its subsidiary, L&T Metro Rail (Hyderabad) Limited. The transaction involves the transfer of 741,29,99,999 equity shares for a total consideration of ₹1,461.47 crores. This move aligns with the company’s broader business strategy as it exits its ownership position in the urban transit project.
Financial Impact and Closing
The deal is subject to customary closing adjustments and is slated for completion by June 30, 2026. As part of the post-closing transition, the buyer, Hyderabad Metro Rail Limited, intends to refinance the existing debt of the subsidiary. Consequently, the Corporate Guarantee and Letter of Comfort previously issued by the company regarding this debt will be released.
Subsidiary Profile
For the financial year ended March 31, 2025, the subsidiary contributed ₹1,100.13 crores in revenue, representing approximately 0.43% of the company’s consolidated revenue. Its net worth stood at ₹807.49 crores, or roughly 0.83% of the company’s consolidated net worth. The company has clarified that this transaction is not classified as a related party transaction.
Source: BSE
