Larsen & Toubro board approves realty biz transfer to L&T Realty Properties

Engineering and construction major Larsen & Toubro Ltd (L&T) on Monday, December 8, said it has approved a scheme of arrangement to transfer and vest its realty undertaking to its wholly-owned subsidiary, L&T Realty Properties Ltd. The decision was taken by the board on December 8, 2025, at its meeting held in Muscat, Oman, based on recommendations of the Audit Committee and independent directors.

The scheme provides for the transfer of the realty undertaking of L&T to the transferee company on a going

concern basis through a slump sale. The scheme is subject to the approval of shareholders and creditors of the companies, and regulatory approvals, including no-objection or observation letters from the BSE and the NSE and sanction by the Mumbai Bench of the National Company Law Tribunal.

As per the disclosures, the realty undertaking recorded standalone revenue from operations of ₹640.57 crore for the half-year ended September 30, 2025, accounting for 0.93% of L&T’s total standalone revenue. The standalone net worth of the realty undertaking stood at ₹2,148.86 crore, representing 3.16% of L&T’s standalone net worth as of the same date.

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Under the scheme, L&T Realty Properties will issue 3,93,53,93,685 fully paid-up equity shares of face value ₹10 each at a premium of ₹6 per share to Larsen & Toubro, with provisions for value adjustment as per the scheme.

The expected completion of the transaction is contingent upon receipt of approvals from shareholders, creditors, stock exchanges and the National Company Law Tribunal. The scheme will be operative from the effective date as defined in the scheme.

The consideration for the transaction has been determined at arm’s length, supported by a valuation report dated December 8, 2025, issued by SSPA & Co, chartered accountants and registered valuers, and a fairness opinion dated December 8, 2025 issued by Inga Ventures Private Limited, a category-I merchant banker.

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L&T Realty Properties is a wholly-owned subsidiary of Larsen & Toubro. The arrangement will not result in any change in the shareholding pattern of Larsen & Toubro.

Shares of Larsen and Toubro Ltdended at ₹3,995.70, down by ₹42.30, or 1.05%, on the BSE today, December 8.