L&T Share Price Declines 2% Following Divestiture of L&T Metro Rail (Hyderabad) Stake

Larsen & Toubro Share Price Falls 2.29% Amid Plans to Sell Stake in Hyderabad Metro Rail

Larsen & Toubro (L&T) share price declined by 2.29% to ₹4,000 apiece in Thursday's trading session following the company's announcement to sell its 100% stake in L&T Metro Rail (Hyderabad).

L&T's share price opened at ₹4,083 apiece on Thursday, a slight drop from its previous close of ₹4,096. The engineering and construction major's stock has remained volatile in the near-term due to weak market sentiments.

Key Details of L&T Stake Divestment

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In an exchange filing dated 30 April, L&T announced 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.

Hyderabad Metro Rail Project Overview

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.

Comparison of L&T Share Price Trend

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Following the acquisition, HMRL intends to expand the metro network, further enhancing the asset's footprint in India's rapidly growing urban transit sector. The transaction reflects L&T's continued focus on creating long-term value and strengthening its portfolio of core, technology-led businesses.

L&T's Chairman & Managing Director, S N Subrahmanyan, expressed confidence that under the stewardship of the Government of Telangana, the project will continue to grow and create long-term value for all stakeholders.

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.