HYDERABAD: Hyderabad Metro Rail Limited (HMRL) has signed a Share Purchase Agreement with Larsen & Toubro Limited and L&T Metro Rail (Hyderabad) Limited (LTMRHL) to acquire 100% equity shares of LTMRHL for Rs 1,461.47 crore, in line with the state government’s decision to take over Hyderabad Metro Rail Phase-I.
The agreement was signed in the presence of Chief Secretary and HMRL chairman K Ramakrishna Rao, MAUD Special Chief Secretary Jayesh Ranjan, HMRL Managing Director Sarfaraz Ahmad and senior officials of L&T and LTMRHL. Sarfaraz Ahmad signed on behalf of HMRL, DK Sen for L&T Ltd and KVB Reddy for LTMRHL.
The existing debt of LTMRHL, amounting to Rs 13,538.53 crore as of April 30, will be refinanced with a guarantee from the Telangana government. IDBI Capital acted as the transaction advisor, while Saraf & Partners provided legal advisory services.
Earlier in the day, L&T Chairman and Managing Director SN Subrahmanyan met Chief Minister A Revanth Reddy.
Officials said the acquisition will enable better integration between Phase-I and the proposed Phase-II, improving planning, execution and commuter services.