Larsen & Toubro board approves realty undertaking transfer to wholly-owned subsidiary

On December 8, 2025, the board of directors of Larsen & Toubro Limited approved a scheme of arrangement with L&T Realty Properties Limited. This scheme involves the transfer and vesting of Larsen & Toubro's realty undertaking to L&T Realty Properties Limited, a wholly-owned subsidiary. The transaction is structured as a slump sale, with the transferee company issuing 3,93,53,93,685 fully paid-up equity shares of face value ₹10 each at a premium of ₹6 to Larsen & Toubro Limited.

The realty undertaking generated revenue from operations of ₹640.57 crore, representing 0.93% of Larsen & Toubro's total revenue from operations for the half year ended September 30, 2025. Its net worth was ₹2,148.86 crore, accounting for 3.16% of Larsen & Toubro's standalone net worth as of the same date. The scheme is subject to approvals from stakeholders and regulatory authorities, including stock exchanges and NCLT.

This arrangement aims to establish a focused management structure for the realty undertaking, leverage institutional strengths, and facilitate the raising of financial resources for greater growth within the realty business. The scheme will not result in a change in the shareholding pattern of the listed entity, Larsen & Toubro Limited.