In line with its plans of divesting stake in non-core assets, infrastructure builder Larsen & Toubro on Friday said the company is likely to make one more divestment before the end of the current financial year.
In a post earnings conference call with the media, Shankar Raman, CFO, Larsen & Toubro, said, the company wants to close the deal at the earliest but it depends on the valuation received. He, however, did not disclose the target unit.
“The general approach has been that we wanted to divest asset heavy back-end return investments. All the concession assets we are holding are candidates for such a divestment. We are trying out best to see how quickly we can close,” Raman added.
“We wish to announce some closure by the end of the year but these times are such that the more you show the eagerness to close the more discounts gets negotiated. So, we need to balance between the buyer’s ask and our interest enclosure,” Raman clarified.
Earlier this financial year, L&T concluded the divestment of its entire stake in 99 MW hydro power plant at Singoli-Bhatwari in Uttarakhand to ReNew Power Services for ₹1,001.50 crore.
Non-core assets
L&T has identified its non-core assets for divestment which includes in Nabha Power, a 2x700 MW supercritical thermal power plant at Rajpura, Punjab, L&T Infrastructure Development Projects, its subsidiary engaged in road projects and power transmission lines and Hyderabad Metro, the largest Public-Private Partnership (PPP) project in the metro rail sector.
In December, L&T entered into a definitive agreement with HSBC Asset Management India to sell its wholly-owned subsidiary L&T Investment Management, which is the investment manager for L&T Mutual Fund.