The board of directors at Larsen & Toubro (L&T) has sanctioned the transfer of its real estate business undertaking (Realty BU) to L&T Realty Properties (L&T Realty), a wholly-owned subsidiary of the company, through a slump-sale as part of a scheme of arrangement.
This initiative signifies the commencement of a gradual consolidation of all real estate assets and operations of L&T, transferring them to L&T Realty. N Subrahmanyan, chairman and managing director of L&T, stated, āL&T Realty must operate independently. It is imperative for it to consistently enhance its project pipeline through proactive growth of its land bank and joint developments.
This necessitates periodic capital infusion, making it crucial to consolidate all our real estate operations under a single corporate structure, thereby strengthening L&T Realtyās identity as a cohesive brand in real estate. The proposed transfer represents the initial step towards establishing a consolidated powerhouse capable of transforming the future of urban development in India.ā
The standalone revenue from operations for the business unit was ā¹640.57 crore, with a net worth of ā¹2,148.86 crore for the half-year ending September 30, 2025. Upon the implementation of the Scheme and the transfer and vesting of the Realty BU, L&T Realty will issue 3,93,53,93,685 fully paid-up equity shares with a face value of ā¹10 each to the company, each at a premium of ā¹6, and if an adjustment is necessary in accordance with the scheme, will compensate the company in value.
The move āwill empower L&T Realty to secure financial resources through equity and debt from investors, strategic partners, and collaborations,ā the company noted in a BSE filing. āThe strategy is focused on enhancing our presence in major metropolitan areas, maintaining premium and luxury brand positioning, engaging in disciplined land acquisitions, fortifying partnerships for joint developments, and navigating market cycles with institutional rigor,ā Subrahmanyan remarked.
The standalone revenue from operations for the business unit amounted to ā¹640.57 crore, while its net worth was ā¹2,148.86 crore for the half-year period ending on September 30, 2025. With the implementation of the Scheme and the transfer and vesting of the Realty Business Unit, L&T Realty will issue 3,93,53,93,685 fully paid-up equity shares with a face value of ā¹10 each to the company, each share priced at a premium of ā¹6. Additionally, should an adjustment be necessary in accordance with the scheme, the company will receive a corresponding value payment.
According to a filing with the BSE, this initiative “will enable L&T Realty to secure financial resources through equity and debt from investors, strategic partners, and collaborations.” Subrahmanyan stated, “The strategy is focused on enhancing our presence in major metropolitan areas, maintaining a premium and luxury brand positioning, pursuing disciplined land acquisitions, strengthening partnerships for joint developments, and effectively navigating market cycles with institutional rigor.”
L&T established its Realty Business Unit in 2007 to transform owned land parcels into residential and commercial projects. In 2011, the company launched L&T Realty as a wholly-owned subsidiary, assigning it the responsibility to develop both L&T’s land holdings and joint-venture opportunities. At present, L&T Realty possesses a development potential of 65 million square feet, encompassing residential communities, grade-A commercial spaces, and high-street retail developments.
