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What is the story about?
Larsen & Toubro (L&T) has extended the deadline to complete the sale of its entire stake in L&T Metro Rail (Hyderabad) to December 31, 2026, marking the second delay in closing the transaction.
In a regulatory filing on Wednesday (September 30), L&T said the estimated completion date had been moved to December 31 from September 30. The company did not give a reason for the extension and said all other terms of the deal remain unchanged.
L&T had initially expected to complete the transaction by June 30. It later pushed the deadline to September 30 in a July 1 filing.
The engineering and infrastructure major had signed an agreement with Hyderabad Metro Rail, a Telangana government enterprise, on April 29 to sell its entire stake in L&T Metro Rail (Hyderabad) for ₹1,461.47 crore.
The deal covers 741.30 crore equity shares and remains subject to customary closing adjustments.
Once completed, L&T Metro Rail (Hyderabad) will no longer be a subsidiary of L&T.
Why is L&T selling its Hyderabad Metro stake?
The divestment is part of L&T’s broader plan to exit development projects and focus its capital on its engineering and technology businesses.
L&T Metro Rail (Hyderabad) operates the Hyderabad Metro under a public-private partnership with the Telangana government.
The 69.2-km network has three elevated corridors — Miyapur-L B Nagar, Jubilee Bus Station-Mahatma Gandhi Bus Station and Nagole-Raidurg. The final section was commissioned in February 2020.
Also read: Wipro extends deadline for Alpha Net contract acquisition to December 2026
The company also has development rights for 18.5 million sq ft of transit-oriented development around the Metro network.
As of March 2025, L&T had monetised 4.74 million sq ft of these development rights and developed four retail malls with a combined leasable area of 1.20 million sq ft.
How big is the Hyderabad Metro business?
The Hyderabad Metro recorded average daily ridership of 4.44 lakh passengers in FY25, compared with 4.42 lakh a year earlier. Its single-day ridership record stands at 5.63 lakh passengers, recorded on August 14, 2024.
L&T Metro Rail (Hyderabad) reported revenue of ₹1,100.13 crore and a net worth of ₹807.49 crore for the year ended March 31, 2025.
The business accounted for 0.43% of L&T’s consolidated revenue and 0.83% of its consolidated net worth in FY25.
In a regulatory filing on Wednesday (September 30), L&T said the estimated completion date had been moved to December 31 from September 30. The company did not give a reason for the extension and said all other terms of the deal remain unchanged.
L&T had initially expected to complete the transaction by June 30. It later pushed the deadline to September 30 in a July 1 filing.
The engineering and infrastructure major had signed an agreement with Hyderabad Metro Rail, a Telangana government enterprise, on April 29 to sell its entire stake in L&T Metro Rail (Hyderabad) for ₹1,461.47 crore.
The deal covers 741.30 crore equity shares and remains subject to customary closing adjustments.
Once completed, L&T Metro Rail (Hyderabad) will no longer be a subsidiary of L&T.
Why is L&T selling its Hyderabad Metro stake?
The divestment is part of L&T’s broader plan to exit development projects and focus its capital on its engineering and technology businesses.
L&T Metro Rail (Hyderabad) operates the Hyderabad Metro under a public-private partnership with the Telangana government.
The 69.2-km network has three elevated corridors — Miyapur-L B Nagar, Jubilee Bus Station-Mahatma Gandhi Bus Station and Nagole-Raidurg. The final section was commissioned in February 2020.
Also read: Wipro extends deadline for Alpha Net contract acquisition to December 2026
The company also has development rights for 18.5 million sq ft of transit-oriented development around the Metro network.
As of March 2025, L&T had monetised 4.74 million sq ft of these development rights and developed four retail malls with a combined leasable area of 1.20 million sq ft.
How big is the Hyderabad Metro business?
The Hyderabad Metro recorded average daily ridership of 4.44 lakh passengers in FY25, compared with 4.42 lakh a year earlier. Its single-day ridership record stands at 5.63 lakh passengers, recorded on August 14, 2024.
L&T Metro Rail (Hyderabad) reported revenue of ₹1,100.13 crore and a net worth of ₹807.49 crore for the year ended March 31, 2025.
The business accounted for 0.43% of L&T’s consolidated revenue and 0.83% of its consolidated net worth in FY25.
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