Larsen & Toubro wraps up sale of L&T Infrastructure Engineering to STUP Consultants

Larsen & Toubro Limited, a leading Indian multinational in EPC Projects, Hi-Tech Manufacturing, and Services, has finalized the sale of its entire stake in L&T Infrastructure Engineering Limited (LTIEL) to STUP Consultants Private Limited. This significant transaction, completed after meeting customary conditions as agreed in the Share Purchase Agreement dated November 2, 2023, marks a key strategic shift for the company. Following the completion of this deal, LTIEL is no longer a subsidiary of Larsen & Toubro.

Deal Insights: Larsen & Toubro’s Focus on Core Businesses

– Divestment of 100% Stake: The divestment of LTIEL by Larsen & Toubro aligns with the company’s strategic plan to concentrate on its core businesses and assets. LTIEL, previously known as L&T-Ramboll Consulting Engineers Limited, is a renowned provider of engineering consultancy services in India’s infrastructure sector.

– Acquisition by STUP Consultants: STUP Consultants Private Limited, a subsidiary of Assystem SA of France, has acquired the stake in LTIEL. This acquisition is poised to open new avenues for growth in the infrastructure engineering consultancy domain.

– LTIEL’s Financial Footprint: For the fiscal year 2023, LTIEL reported revenues of Rs. 92 crore, underlining its significant role in the infrastructure engineering consultancy market.

Leadership Perspective on the Transaction

D K Sen, Advisor to the Chairman and Managing Director of L&T and Chairman of LTIEL, commented on the divestment: “This is a step to exit the non-core standalone consulting engineering practice and focus energy and attention on our core businesses. It not only benefits L&T but also allows LTIEL and its employees greater avenues of growth.”

The transaction reflects Larsen & Toubro’s commitment to refining its focus on key areas while enabling LTIEL to explore new opportunities for expansion and development under the stewardship of STUP Consultants.