L&T Flat as Board Approves Realty Biz Transfer

Shares of Larsen & Toubro Ltd (L&T) are trading flat after touching a day’s high of Rs 4,019.90 on 9th December. This occurs as the company announced that its board has approved a scheme of arrangement. It intends to transfer and vest its realty business into its wholly owned subsidiary, L&T Realty Properties Ltd. 

The decision was taken at the board meeting held on 8th December 2025, in Muscat, Oman. This was based on the recommendations of the Audit Committee and independent directors.

The scheme will transfer L&T’s realty business to L&T Realty Properties through a slump sale on a going-concern basis. It will require approvals from shareholders, creditors, stock exchanges, and the Mumbai Bench of the NCLT.

L&T’s realty business reported standalone revenue of Rs 640.57 crore for the half-year ended 30th September, 2025. This made up 0.93% of L&T’s standalone revenue. Its standalone net worth stood at Rs 2,148.86 crore, or 3.16% of the company’s total net worth.

Under the arrangement, L&T Realty Properties will issue 3,93,53,93,685 fully paid-up equity shares of face value of Rs 10 each. These are issued at a premium of Rs 6 per share to L&T. Value adjustment provisions are included in the scheme.

The transaction will be completed once all required approvals are received. The scheme will become effective from the date defined in the document. The consideration has been set on an arm’s-length basis, supported by a valuation report and fairness opinion dated 8th December, 2025.

At 12:33 PM, shares of L&T were trading 0.25% higher at Rs 4,006.80 on NSE.

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