Larsen & Toubro Limited has executed two significant agreements: a Business Transfer Agreement to sell its Data Center and Cloud Services Business to its wholly-owned subsidiary, Vyoma.Al Limited, for ₹1,400 crore. Additionally, L&T has signed a Share Purchase Agreement to divest its entire stake in L&T Network Services Private Limited to Vyoma.Al Limited for ₹30 crore. Both transactions are subject to closing conditions.
Strategic Business Realignment
Larsen & Toubro Limited (L&T) announced today the execution of key agreements that will reshape its business structure. These transactions involve the transfer of its Data Center and Cloud Services Business and the divestment of its stake in L&T Network Services Private Limited (LTNSPL).
Data Center Business Transfer
The company has entered into a Business Transfer Agreement (BTA) with Vyoma.Al Limited, a wholly-owned subsidiary of L&T. Through this BTA, L&T will transfer its Data Center and Cloud Services Business to Vyoma.Al Limited on a slump sale basis. The aggregate consideration for this transfer is set at ₹1,400 crore, subject to closing adjustments. This amount will be discharged by Vyoma.Al Limited through the issuance of its fully paid equity shares to L&T.
Divestment of L&T Network Services
In a separate transaction, L&T has executed a Share Purchase Agreement (SPA) with Vyoma.Al Limited for the sale of its entire 100% equity stake in L&T Network Services Private Limited (LTNSPL). The consideration for this divestment is ₹30 crore, also subject to closing adjustments and to be discharged via equity shares of Vyoma.Al Limited. Upon completion, LTNSPL will become a direct wholly-owned subsidiary of Vyoma.Al Limited and an indirect wholly-owned subsidiary of L&T.
Transaction Details and Timeline
Both transactions were agreed upon on August 11, 2026. The expected completion date for these deals is on or before October 31, 2026, contingent upon the fulfillment of agreed-upon closing conditions. The financial contribution of the Data Center Business for FY 2025-26 was ₹36.6 crore in revenue, representing 0.025% of L&T’s total revenue, with a net worth of ₹1,142 crore (1.565% of L&T’s total net worth). For LTNSPL, the turnover and net worth as of March 31, 2026, were ₹1.86 crore and ₹18.31 crore, respectively, accounting for 0.001% and 0.025% of L&T Consolidated.
These transactions are classified as related party transactions but are being conducted at an arm’s length. Vyoma.Al Limited is a newly incorporated public limited company established to establish data centres and provide technology-enabled services.
Source: BSE
