New Delhi: Larsen & Toubro (L&T) will buy out its partner, Old Lane, in L&T Infrastructure Development Projects Limited (L&T IDPL) to convert it into a fully-owned subsidiary. The engineering giant will buy out the 2.5% shareholding of the long-time investor in L&T IDPL for Rs47.99 crore.
The transaction will be completed subject to certain conditions being fulfilled. The agreement for the 8.19-million-share transaction was signed Thursday.
At 1220 PM, L&T shares traded nearly 2% higher at Rs1,450. The BSE Sensex was up 195 points or 0.5% at 39,246.78.
L&T said it was buying out its partner as a gesture of goodwill towards a longtime investor.
The company, incorporated in 2001, has been in the business of constructing key infrastructure projects across sectors like roads, bridges, ports, airports, water supply, hydel energy and urban infrastructure.
L&T Infrastructure Development Projects had a turnover of Rs257.31 crore and a networth of Rs2,503.58 crore as on March 31, 2019.