Larsen & Toubro Receives SEBI, BSE & NSE Observations for Realty Slump Sale Scheme

Mumbai, 19 March 2026 – Larsen & Toubro Limited (L&T) has received observation letters from BSE Limited and the National Stock Exchange of India (NSE) concerning its proposed scheme of arrangement with L&T Realty Properties Limited (LRPL).

The scheme involves a slump sale of L&T’s realty undertaking to LRPL, aimed at streamlining operations and creating synergies between the entities. This follows the approval of the scheme by L&T’s Board, subject to regulatory clearances.

Key Observations from SEBI, BSE & NSE

1. The proposed scheme must comply with Regulation 11 of SEBI (LODR) 2015.

2. Full disclosure of all ongoing adjudication, recovery, prosecution, and enforcement actions against L&T, its promoters, and directors must be made to shareholders.

3. Additional information submitted post-filing with the stock exchanges should be displayed on company and exchange websites.

4. The scheme must comply with SEBI circulars and transfer all liabilities of the demerged undertaking to the resulting company.

5. Financials considered for valuation reports must be less than six months old.

6. Proposed equity shares, if any, must be issued in demat form only.

7. Observations from SEBI/BSE/NSE must be incorporated in the petition filed with the National Company Law Tribunal (NCLT).

8. Additional disclosures to shareholders must include the rationale, synergies, cost-benefit analysis, pre- and post-scheme financials, revenue, PAT, EBITDA, assets and liabilities, and any potential risks.

Exchange Approval

Based on the draft scheme and documents submitted, NSE conveyed a “No Objection” under Regulation 37 of SEBI (LODR), enabling L&T to file the scheme with the NCLT. The observation letter is valid for six months from 19 March 2026.