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L&T to offload its 50% shareholding in Dhamra Port JV with Tata Steel

21 Mar 2012 Evaluate

Engineering major Larsen & Toubro (L&T) may exit its 50 per cent shareholding in an equal joint venture with Tata Steel - Dhamra Port Company -as the former looks to encash value from matured projects and reinvest them in green field ventures in the port sector, where it can create similar value.

Country’s largest listed engineering firm, plans to sell stake in some of the matured projects of L&T Infrastructure Development Projects (L&T IDPL). This move would provide the company with some benchmark for valuing the attractive set of over two dozen projects that the company has across different domains such as roads and ports.

L&T IDPL, subsidiary of L&T, which develops, operates and maintains infrastructure projects and also provides advisory services relating to financing and engineering of the projects. Prominent projects being undertaken by the subsidiary include the Hyderabad Metro, seven operational road/bridge projects, five other road­/bridge projects, International Seaport at Haldia and 11 other urban infrastructure projects as per L&T’s last available annual report. L&T also has a stake in a container port at Kattupalli in Tamil Nadu.

Meanwhile, Dhamra Port Company that commenced commercial operations on May 6, 2011, aims to service the mineral hinterland of north Orissa, Jharkand, West Bengal and Chhattisgarh to facilitate transport of minerals such as iron ore within and outside India. The port also has a 62.5 km rail link to the main Howrah-Chennai lines at Bhadrak. The port has been awarded a 34-year concession by the Orissa government to build, own, operate, share and transfer deep water all weather port at Dhamra that can accommodate super cape size vessels of up to 1.8 lakh dead weight tones.

Larsen & Toubro Share Price

4094.95 -22.40 (-0.54%)
17-Apr-2026 16:59 View Price Chart
Peers
Company Name CMP
Larsen & Toubro 4094.95
Rail Vikas Nigam 303.10
NCC 161.30
KEC International 580.10
Kalpataru Projects 1232.90
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