L&T to invest Rs 506 crore in energy subsidiary, acquire SapuraNautica's entire 40% stake in LTSOPL.
(File Image) L&T to invest Rs 506 crore in energy subsidiary
Larsen & Toubro (L&T) has announced that it will invest Rs 506 crore in its energy subsidiary, L&T Sustainable Infra Limited (L&T SIL). The investment will be used to acquire SapuraNautica's entire 40% stake in LTSOPL, a joint venture between L&T SIL and SapuraNautica. LTSOPL is a leading provider of offshore engineering, procurement, construction, and installation (EPCI) services. The company has a strong track record in the oil and gas sector, and it is also expanding into the renewable energy sector. The acquisition of SapuraNautica's stake in LTSOPL will give L&T SIL a majority stake in the company. This will allow L&T SIL to consolidate its position in the offshore EPCI market, and it will also give the company a stronger foothold in the renewable energy sector. The investment in LTSOPL is part of L&T's strategy to expand its presence in the energy sector. L&T is already a leading player in the Indian power sector, and it is also expanding its operations in the global energy market. The acquisition of SapuraNautica's stake in LTSOPL is a significant move by L&T. It shows that the company is committed to the energy sector, and it is also a sign of L&T's confidence in the future of the offshore EPCI market. Here are some additional details from the news:
The investment in LTSOPL will be made in two tranches. The first tranche of Rs 253 crore will be paid upfront, and the second tranche of Rs 253 crore will be paid in two installments over the next two years.
The acquisition of SapuraNautica's stake in LTSOPL is subject to regulatory approvals.
L&T SIL expects the acquisition to be completed in the next few months.
The acquisition of SapuraNautica's stake in LTSOPL is a positive development for L&T. It will give the company a stronger foothold in the offshore EPCI market, and it will also help L&T to expand its operations in the renewable energy sector. The investment in LTSOPL is also a sign of L&T's confidence in the future of the offshore EPCI market. The market is expected to grow in the coming years, and L&T is well-positioned to capitalize on this growth.
