Larsen & Toubro on Wednesday said it has executed a share purchase agreement to dispose its entire shareholding in subsidiary L&T Metro Rail (Hyderabad) for ₹1,461.47 crore.
The share purchase agreement has been signed with Hyderabad Metro Rail, which is a Telangana government enterprise. Upon closing of the transaction, L&T Metro Rail (Hyderabad) would cease to be a subsidiary. The divestment is estimated to be completed by June 30, 2026, Larsen & Toubro said in a filing to the stock exchange.
Also, on completion of the transaction, Hyderabad Metro Rail proposes to refinance the existing debt of LTMRHL. Consequently, the corporate guarantee and letter of comfort issued by the company in respect of such debt will be released. For the financial year ended March 31, 2025, LTMRHL’s revenue was ₹1,100.13 crore and the networth ₹807.49 crore. The revenue and networth corresponds 0.43% and 0.83% of the consolidated revenue and networth of L&T group respectively.
The State government recently announced Chief Secretary K. Ramakrishna Rao will head the newly-acquired L&T Metro Rail Hyderabad as its Chairman and he will be supported by a nine-member Board of Directors.
