Larsen & Toubro (L&T) has approved a scheme to transfer its Realty Undertaking to its wholly-owned subsidiary, L&T Realty Properties Limited. The transfer aims to create a focused management structure for the realty business, enhance efficiency, and unlock greater value. Shareholders and creditors must still approve the arrangement. The effective date will depend on regulatory approvals. The company’s board approved the scheme at a meeting held on December 8, 2025.
Realty Business Restructuring
Larsen & Toubro (L&T) has approved a scheme of arrangement for the transfer and vesting of its Realty Undertaking to L&T Realty Properties Limited. The board approved the scheme at a meeting held on December 8, 2025. This move is designed to create a more focused management structure for L&T’s realty operations. The transfer will be conducted under Sections 230 to 232 of the Companies Act, 2013.
Rationale for the Transfer
The restructuring aims to achieve several strategic objectives, including:
- Empowering L&T Realty Properties Limited with a dedicated management structure and specialized expertise.
- Improving efficiency and accountability within the realty business.
- Maximizing the value of the Realty Undertaking by focusing on strategic opportunities.
Financial Details and Impact
The Realty Undertaking contributed 0.93% of L&T’s total revenue from operations and 3.16% of the company’s net worth as of September 30, 2025. For the half-year ended September 30, 2025, the Realty Undertaking had revenue from operations of ₹640.57 crore and a net worth of ₹2,148.86 crore. The company will receive 3,93,53,93,685 fully paid-up equity shares of L&T Realty Properties Limited at a premium of ₹6 per share.
Next Steps
The scheme is subject to the approval of the company’s members and creditors, as well as regulatory approvals. Upon the scheme becoming effective, L&T Realty Properties Limited will continue to operate within the L&T Group, leveraging the company’s brand equity and institutional strengths.
Source: BSE
