Larsen & Toubro (L&T) share price fell over 2.29% to ₹4,000 apiece in Thursday’s trading session after the company planned to sell 100% stake in L&T Metro Rail (Hyderabad).
The engineering and construction major stock opened at ₹4,083 apiece today, as compared to the previous close of ₹4,096 on Thursday.
L&T stake divestment details
In an exchange filing dated 30 April, L&T said that it has signed a share purchase agreement with Hyderabad Metro Rail Limited (HMRL), a fully state-owned enterprise of the Government of Telangana, to divest its entire stake in L&T Metro Rail (Hyderabad) Limited (LTMRHL).
The divestment reflects a value-driven monetisation of a mature infrastructure asset and aligns with L&T’s broader strategy of exiting its development projects portfolio to unlock capital for reinvestment in its core engineering and technology-focused businesses.
Following the acquisition, HMRL intends to expand the metro network, further enhancing the asset’s footprint in India’s rapidly growing urban transit sector.
Run by LTMRHL, the Hyderabad Metro is among the world’s largest metro rail projects developed under a Public-Private Partnership (PPP) model. Covering nearly 69 km across three corridors, it stands as a major urban infrastructure initiative executed in collaboration with the Government of Telangana.
Built by L&T, the project sets a high standard in engineering, urban mobility, and sustainable infrastructure. It has greatly improved connectivity across Hyderabad while also supporting the city’s economic expansion and overall urban development.
“This transaction reflects L&T’s continued focus on creating long-term value and strengthening its portfolio of core, technology-led businesses. The Hyderabad Metro Rail project is a world-class asset and a good example of our ability to deliver large-scale infrastructure that transforms cities and improves the quality of life. We are confident that under the stewardship of the Government of Telangana, the project will continue to grow and create long-term value for all stakeholders,” said S N Subrahmanyan, Chairman & Managing Director at L&T.
L&T share price trend
L&T share price has remained volatile in the near-term amid weak market sentiments. The stock has fallen 1.21% in a week; however, it has gained over 14.29% in a month.
The stock has outperformed the Nifty 50 on a year-to-date (YTD) basis, delivering returns of 20%, while the benchmark index has declined by 1.61% over the same period.
Looking at the broader level, L&T share price has given 69.39% gains in three years and whopping 199% returns in the last five years.
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