L&T Infra Development: Edelweiss Alt’s ₹6,000 Cr Purchase

Edelweiss Alternatives, a frontrunner in the Indian alternative investment management scene, has finalized the Rs 6,000 crore acquisition of L&T Infrastructure Development Projects Ltd (LTIDPL). This deal, first announced in December 2022, marks a significant stride forward for Edelweiss Alt, solidifying its position as a major player in the Indian infrastructure sector.

Acquisition Fuels Infrastructure Yield Strategy

The acquisition aligns strategically with Edelweiss Alt’s well-defined Infrastructure Yield Plus strategy. This strategy prioritizes the acquisition of operational infrastructure assets that generate consistent cash flow. Edelweiss aims to further unlock the value of these assets through proactive asset management practices.

Diversified Portfolio Bolstered by Strategic Assets

The acquisition brings a diverse range of assets under Edelweiss Alt’s wing. This includes seven operational roads spanning an impressive 4,400 lane kilometers and a critical power transmission line stretching 960 circuit kilometers. With this strategic move, Edelweiss Alt’s infrastructure platform now boasts a comprehensive portfolio of 26 assets, including:

• 5,000 lane kilometers of operational roads
• 1,800 kilometers of power transmission lines
• 813 MWp of renewable energy assets

This diversified portfolio generates a robust cumulative annual revenue of Rs 3,000 crore, solidifying Edelweiss Alt’s position as a dominant force in the Indian infrastructure landscape.

L&T Streamlines Portfolio for Strategic Growth

For Larsen & Toubro (L&T), the deal signifies a well-calculated strategic move to streamline their portfolio. By divesting LTIDPL, L&T aims to reduce its exposure to asset-heavy development projects. This shift in focus allows them to concentrate on their core competencies and improve return on equity.

Landmark Deal Ushers in New Era for Infrastructure Investment

Sreekumar Chatra, Managing Director of Edelweiss Alternative’s Infrastructure Yield Strategy, has hailed this acquisition as a “significant milestone” for the business. The ramifications of this deal are likely to extend far beyond Edelweiss Alt, potentially attracting further investment into the Indian infrastructure sector and fostering its overall growth. This strategic acquisition by Edelweiss Alt not only strengthens their own infrastructure portfolio but is also expected to have a ripple effect, stimulating further investment in critical infrastructure projects across India.

Recent Blog : Standard Chartered Bank Backs DCM Shriram with Rs 100 Cr