Infrastructure Yield Plus strategy, managed by Edelweiss Alternatives, has signed definitive agreements with Larsen & Toubro Limited ("L&T") and Canada Pension Plan Investment Board ("CPP Investments") to acquire 100% equity stake in L&T Infrastructure Development Projects Limited (L&T IDPL). The proposed acquisition will be for an enterprise value of approximately INR 6,000 cr, along with its operating team that has a proven track record in operational excellence.
The portfolio comprises eight roads and one power transmission asset in India, spanning ~4,900 lane-kms and ~960 ckms respectively. The transaction is subject to customary closing conditions including applicable regulatory and other approvals.
Following this acquisition, the infrastructure platform will scale up to 26 assets with cumulative annual revenue of nearly INR 2,700 cr. The platform will be a diverse mix of power transmission & substations, renewables and highway assets spread geographically. This acquisition is in line with the infrastructure yield strategy to generate regular distributions for investors by acquiring quality operating infrastructure assets with strong cash flows and unlocking value through active asset management.
Sreekumar Chatra, Managing Director, Infrastructure Yield Strategy said, "We look forward to acquiring these high-quality assets built by L&T, a renowned engineering and construction major. These assets have a proven track record of operations, are geographically dispersed and have long residual life, which is consistent with our investment strategy. We believe our asset management and operating capabilities, together with that of L&T IDPL, will help scale up this platform."
Subahoo Chordia, Head - Infrastructure Funds, Edelweiss Alternatives said, "Asset monetization and recycling capital holds the key to value creation and development in Infrastructure. We will continue to provide solutions to construction companies and developers to recycle capital to fund their growth. On completion of this acquisition, there will be a high-quality diversified infrastructure portfolio of 26 assets across 13 states, making us a leading infrastructure investor in India."
Shares of Edelweiss Financial Services Limited was last trading in BSE at Rs. 67.85 as compared to the previous close of Rs. 68.45. The total number of shares traded during the day was 147247 in over 2322 trades.
The stock hit an intraday high of Rs. 69.30 and intraday low of 66.65. The net turnover during the day was Rs. 9970756.00.