Larsen & Toubro Sells Data Center Business for ₹1,400 Crore to Subsidiary Vyoma.AI
Larsen & Toubro will transfer its Data Center Business to subsidiary Vyoma.AI for ₹1,400 crore and sell its entire stake in L&T Network Services Private Limited to Vyoma for ₹30 crore. Both transactions are expected to close by October 31, 2026.
The divestment of the Data Center Business and LTNSPL represents a strategic restructuring for Larsen & Toubro, focusing its operations and potentially streamlining its subsidiary structure. The consideration amounts are significant, indicating a material shift in asset allocation.
The transaction involves the transfer of assets and subsidiaries between the company and its own subsidiaries, which is a routine corporate restructuring. While substantial amounts are involved, the immediate financial impact on the parent company is neutral as it's an internal restructuring.
Larsen & Toubro Limited (LT) has executed a Business Transfer Agreement (BTA) with its wholly-owned subsidiary, Vyoma.AI Limited, for the transfer of its Data Center and Cloud Services Business (DC Business) through a slump sale. The aggregate consideration for this transfer is ₹1,400 crore, subject to closing adjustments, and will be discharged by Vyoma through the issuance of its fully paid equity shares to LT.
Additionally, LT, Vyoma, and another wholly-owned subsidiary, L&T Network Services Private Limited (LTNSPL), have executed a Share Purchase Agreement (SPA). Pursuant to this, LT will divest its entire 100% equity stake in LTNSPL to Vyoma for a consideration of ₹30 crore, also to be discharged by Vyoma through its equity shares. Following this transaction, LTNSPL will become a direct wholly-owned subsidiary of Vyoma and an indirect wholly-owned subsidiary of LT.
The Data Center Business contributed ₹36.6 crore in revenue and had a net worth of ₹1,142 crore in FY 2025-26, representing 0.025% and 1.565% of L&T's total standalone revenue and net worth, respectively. LTNSPL reported a turnover of ₹1.86 crore and a net worth of ₹18.31 crore as of March 31, 2026, which were 0.001% and 0.025% of L&T's consolidated figures, respectively.
Both transactions are subject to the fulfillment of agreed-upon closing conditions. The expected completion date for both the transfer of the DC Business and the divestment of LTNSPL is on or before October 31, 2026. These transactions are considered related party transactions but are being conducted at arm's length.
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Larsen & Toubro Limited filed this with the NSE as a statutory disclosure, categorised under other corporate actions. It is a primary document, not a recommendation, and the desk marks it medium impact: worth reading, rarely worth acting on by itself.
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