Larsen & Toubro Limited has signed a share purchase agreement to divest its entire holding in L&T Metro Rail (Hyderabad) Limited (LTMRHL), as per an exchange filing dates April 29, 2026.
The agreement was executed on 29 April 2026 with Hyderabad Metro Rail Limited, a Government of Telangana enterprise.
The transaction is expected to be completed by 30 June 2026, subject to standard closing conditions. Upon completion, LTMRHL will no longer remain a subsidiary of the company.
The sale involves 741.29 crore equity shares for a total consideration of ₹1,461.47 crore. The payment will be received at the time of closing, with adjustments as applicable.
Hyderabad Metro Rail Limited, the buyer, is a state-owned entity. The company has clarified that the transaction does not fall under related party dealings.
For the financial year ended 31 March 2025, LTMRHL reported revenue of ₹1,100.13 crore. This accounted for 0.43% of Larsen & Toubro’s consolidated revenue.
Its net worth stood at ₹807.49 crore, representing 0.83% of the consolidated net worth. These figures indicate a relatively small share in the company’s overall financials.
Following the completion of the transaction, Hyderabad Metro Rail Limited plans to refinance the existing debt of LTMRHL. As part of this process, corporate guarantees and letters of comfort issued by Larsen & Toubro in relation to the metro business are expected to be released.
The company has stated that the sale is not part of any scheme of arrangement and has been disclosed in line with regulatory requirements.
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As of April 30, 2026, 10:53 am, Larsen and Toubro (L&T) share price was trading at ₹4,005.30, down 2.19% from the previous closing price.
The divestment transfers full ownership of the Hyderabad metro project to a government entity. After completion, the business will be removed from Larsen & Toubro’s subsidiary structure.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
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Published on: Apr 30, 2026, 12:08 PM IST
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