L&T Approves Scheme to Transfer Realty Business to Subsidiary L&T Realty Properties

9 Dec 2025 , 11:33 AM

Larsen & Toubro Ltd (L&T) has approved a scheme of arrangement to transfer its realty undertaking to its wholly owned subsidiary, L&T Realty Properties Ltd. The board cleared the proposal on December 8, 2025, at its meeting in Muscat, Oman. The decision follows recommendations from the Audit Committee and independent directors.

The scheme involves transferring the company’s realty undertaking to the subsidiary on a going concern basis through a slump sale, positioning the subsidiary as the dedicated entity for L&T’s real estate operations.

The transaction is subject to approvals from shareholders, creditors, stock exchanges, and final sanction from the Mumbai Bench of the National Company Law Tribunal. The scheme will become operative from the effective date mentioned within the arrangement.

Based on disclosures, the realty undertaking reported standalone revenue of ₹640.57 crore for the half year ended September 30, 2025. This accounted for 0.93 percent of L&T’s total standalone revenue. The standalone net worth of the realty business stood at ₹2,148.86 crore, forming 3.16 percent of the company’s standalone net worth as of the same period.

Under the arrangement, L&T Realty Properties will issue 3,93,53,93,685 fully paid equity shares of face value ₹10 each, at a premium of ₹6 per share, to Larsen & Toubro. The scheme also provides for value adjustment in accordance with its terms.

Completion of the transaction will depend on securing all required approvals from stakeholders and statutory bodies. Once cleared, the transfer will formalise the realignment of L&T’s real estate assets under the subsidiary.

The consideration for the slump sale has been determined at arm’s length, supported by a valuation report from SSPA & Co, chartered accountants and registered valuers, along with a fairness opinion issued by Inga Ventures Private Limited, a Category I merchant banker. L&T confirmed that the transfer will not alter its overall shareholding pattern, as L&T Realty Properties remains a wholly owned subsidiary of the parent company.

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