L&T Board Approves Scheme of Arrangement with L&T Realty Properties

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).