L&T to divest stake in infrastructure arm

Engineering and construction major Larsen & Tubro is divesting stake in its infrastructure development arm in order to unlock value and support growth of its core businesses, chairman and managing director of the company A M Naik said.

Speaking to reporters on the sidelines of the company's annual general meeting, Naik said it should happen in the current financial year itself. 

''We are in the process to bring investor in our infrastructure development company (IDPL) and hopefully, we will do that in the next two months. We will do the same in the Dhamra project too, which will also happen in the current fiscal, Naik said.

''Our constant endeavour is to grow but new capital will come from unlocking value rather than L&T constantly investing in them,'' he added.

He, however, said the equity dilution would also depend on valuation of the business.

Naik said the company plans to be leaner in future and would divest stake where it is asset-heavy, mostly minor businesses. He, however, did not identify the business which it planned to divest.