L&T to Acquire Sapura’s 40% Stake in L&T Sapura Shipping for ₹122.39 Crore

New Delhi: Engineering and infrastructure major Larsen & Toubro Limited (L&T) on Monday announced that it has entered into a Share Purchase Agreement to acquire the entire 40% stake held by its joint venture partner Sapura Nautical Power Pte Ltd in L&T Sapura Shipping Private Limited (LTSSPL).

Following the completion of the transaction, LTSSPL will become a wholly-owned subsidiary of L&T.

Transaction Details

The acquisition involves the purchase of 6.35 crore equity shares of LTSSPL at a price of ₹19.26 per share, amounting to a total consideration of ₹122.39 crore. The deal will be settled through cash consideration.

Additionally, LTSSPL will fully repay the outstanding shareholders’ loan of US$16.93 million to Sapura.

The transaction is expected to be completed by January 31, 2026, subject to customary conditions.

Strategic Rationale

LTSSPL owns and operates a Heavy Lift cum Pipe Lay Vessel (HLPV) used for offshore platform installations and subsea pipeline and cable laying for the hydrocarbon upstream industry.

L&T stated that the acquisition will enhance operational flexibility and asset availability, strengthening its capabilities in offshore project execution, particularly in India and the Middle East.

The offshore marine construction business of LTSSPL complements L&T’s core engineering and construction operations.

Financial Performance of LTSSPL

LTSSPL was incorporated on September 2, 2010 and has been operating as a 60:40 joint venture between L&T and Sapura prior to the acquisition.

Regulatory and Governance Aspects

The transaction qualifies as a related party transaction, as Sapura is a related party to LTSSPL under the Companies Act, 2013. However, L&T clarified that the deal is being conducted on an arm’s length basis. No governmental or regulatory approvals are required for the acquisition.