Infrastructure giant Larsen & Toubro (L&T) today said it has sold its entire 89 per cent stake in L&T Infocity Ltd (LTIL) to Hyderabad-based Ace Urban Developers Ltd for Rs 191 crore.
L&T Infocity Ltd is a special purpose vehicle (SPV) formed by the infrastructure major in partnership with Andhra Pradesh Infrastructure Investment Corporation (APIIC) to develop IT infrastructure in the state.
“L&T promoted an SPV in 1997 in partnership with APIIC to develop IT infrastructure in Andhra Pradesh. L&T owns 89 per cent stake in the SPV and the balance is held by APIIC...L&T has exited by divesting its 89 per cent holding in LTIL to Hyderabad-based infrastructure development company,” it said in a BSE filing.
The SPV had a revenue of Rs 36 crore in 2015-16 with a profit after tax of Rs 7 crore.
The agreement for sale was entered on February 18, 2016.
L&T said the consideration received from such sale/ disposal (is) Rs 191 crore.”
The company said apart from the IT infrastructure developments in Hyderabad, LTIL has also partnered in three ventures with equity investments.
It said LTIL holds 58.11 per cent in HITEX Ltd, an exhibition infrastructure venture, and 74 per cent in L&T HiTech City Ltd, an IT SEZ in Vijayawada.
Besides, LTIL owns 26 per cent in Visakhapatnam IT Park Ltd.