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Edelweiss Alternatives Acquires LT Infra Projects

Edelweiss Alternatives, a subsidiary of the Edelweiss Group, has entered the infrastructure sector with a significant acquisition. The company has acquired L&T Infrastructure Development Projects (LTIDPL) which owns various road assets and power transmission lines for a remarkable Rs. 6,000 crores.

LTIPDL was a joint venture, with Larsen & Toubro Limited (L&T) holding a 51 percent stake and Canada Pension Plan Investment Board (CPP Investments) holding the remaining 49 percent.

The Edelweiss arm is buying 100 per cent ownership in the JV and will get a portfolio comprising seven road assets spanning 4,400 lane-km and a 960-circuit km power transmission line. This move represents a pivotal moment for Edelweiss Alternatives, strengthening its position in infrastructure investments and demonstrating its commitment to diversifying its portfolio.

The sale is in line with L&T’s strategy to exit non-core businesses to reduce its exposure to the asset-heavy developmental projects portfolio to enhance return on equity. The acquisition provides Edelweiss Alternatives with access to a robust portfolio of infrastructure projects, enhancing its role as a key player in alternative investments. Integrating LTIDPL’s assets and expertise is expected to generate synergies and unlock new value creation opportunities. This aligns with the Edelweiss Group’s strategy of enhancing shareholder value through strategic investments and risk management.

LTIDPL has a history of executing infrastructure projects across various sectors, including roads, airports, and energy. Its addition to Edelweiss Alternatives’ portfolio not only expands its presence in infrastructure but also positions the company to capitalize on India’s growing infrastructure development landscape.

Edelweiss Alternatives’ acquisition of LTIDPL marks a transformative step for both entities, ushering in synergies, growth, and value creation in the infrastructure investment domain.