NEW DELHI: The board of directors at Larsen & Toubro (L&T) has approved the transfer of its real estate business (Realty BU) to L&T Realty Properties, a fully-owned subsidiary, through a slump sale as part of an arrangement scheme.
This initiative initiates a gradual consolidation of L&T’s real estate assets under L&T Realty.
N Subrahmanyan, Chairman & Managing Director of L&T, stated, “L&T Realty must operate independently. It needs to consistently grow its project pipeline through proactive land acquisitions and joint ventures. This demands regular capital infusions, making it vital to unify all our real estate operations under one corporate framework and strengthen L&T Realty’s position as a cohesive real estate brand. The proposed transfer is a pivotal step towards creating a consolidated powerhouse set to transform urban development in India.”
The standalone revenue from operations for this business unit was ₹640.57 crore, while its net worth stood at ₹2,148.86 crore for the half-year ending September 30, 2025.
Upon the implementation of the Scheme and the transfer of the Realty BU, L&T Realty will issue 3,93,53,93,685 fully paid equity shares with a face value of ₹10 each to the company, each at a premium of ₹6. Additionally, if any adjustments are needed as per the scheme, a corresponding value will be paid to the company.
This decision “will empower L&T Realty to attract financial resources through equity and debt from investors, strategic partners, and collaborations,” as noted in a BSE filing.
“The strategy is focused on enhancing our presence in major metros, maintaining a premium and luxury brand image, pursuing disciplined land acquisitions, forging strong partnerships for joint developments, and carefully navigating market cycles,” Subrahmanyan added.
Established in 2007, L&T’s Realty BU aimed to transform owned land parcels into residential and commercial projects. In 2011, L&T founded L&T Realty as a wholly-owned subsidiary to oversee the development of both its land holdings and joint-venture opportunities.
Currently, L&T Realty has a development potential of 65 million sq ft, encompassing residential communities, grade-A commercial spaces, and high-street retail developments.
