L&T Board Approves Scheme of Arrangement with L&T Realty Properties
L&T's Board approved a Scheme of Arrangement to transfer its Realty Undertaking (0.93% of H1 FY26 revenue) to L&T Realty Properties on a slump sale basis, pending NCLT and regulatory approvals.
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New Delhi: Larsen & Toubro Limited (L&T) has announced that its Board of Directors, based on recommendations from the Audit Committee and Independent Directors, has approved a Scheme of Arrangement with its wholly-owned subsidiary, L&T Realty Properties Limited.
The Scheme, under Sections 230 to 232 of the Companies Act, 2013, involves the transfer and vesting of L&T’s Realty Undertaking to L&T Realty Properties Limited. Upon effectiveness, the Transferee Company will issue 393.54 crore fully paid-up equity shares to L&T at a nominal face value of ₹10 per share, with a premium of ₹6 per share. The arrangement, structured as a slump sale and conducted at arm’s length, aims to create a focused management structure for the Realty Undertaking, facilitate strategic opportunities, and enable efficient capital raising, while leveraging L&T’s institutional strengths and brand equity.
The transaction is subject to approvals from shareholders, creditors, regulatory authorities, stock exchanges, and the National Company Law Tribunal (NCLT).