L&T Shareholders Approve Scheme of Arrangement for Realty Business Transfer
Larsen & Toubro shareholders approved a Scheme of Arrangement to transfer its Realty Undertaking to L&T Realty Properties Limited for ₹6300 crore. The move aims to provide sharper focus and agility to the realty business, which achieved pre-sales of ₹10,000 crore in FY 2025-26. No shareholding dilution is expected.
The restructuring of the realty business is a significant corporate action that could impact the operational and financial structure of that specific segment, although it is stated to have no material impact on the company's core businesses.
The shareholders' approval of the Scheme of Arrangement for the realty business transfer is a positive development, aimed at enhancing strategic focus and growth potential for the realty arm.
Larsen & Toubro Limited (L&T) announced that its equity shareholders have approved the Scheme of Arrangement for transferring its Realty Undertaking to its wholly-owned subsidiary, L&T Realty Properties Limited (LTRPL). The decision was made at a National Company Law Tribunal (NCLT) convened meeting held on August 4, 2026.
The Scheme, which involves a slump sale of the Realty Undertaking at an enterprise value of ₹6300 crore, will be discharged through the issuance of fully paid-up equity shares by LTRPL to L&T. This restructuring aims to provide L&T Realty with sharper strategic focus, greater operating agility, and enhanced managerial accountability, while continuing to benefit from the L&T brand and governance standards.
Mr. S. N. Subrahmanyan, Chairman & Managing Director of L&T, addressed the shareholders, assuring them that the proposal does not involve any dilution of their shareholding in L&T. He highlighted the strategic rationale, the estimated development potential of approximately 71 million square feet for L&T Realty, and its pre-sales of approximately ₹10,000 crore in FY 2025-26, contributing 0.59% to consolidated revenue. The structure is expected to provide flexibility in accessing growth capital and attracting strategic partners.
The resolution for the Scheme was passed with the requisite majority through e-voting, with 99.0697% of the valid votes cast in favour. The meeting concluded with the formal approval of the arrangement, which is expected to create a stronger platform for growth in India's real estate sector without materially impacting L&T's broader engineering, manufacturing, technology, and infrastructure businesses.
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