Larsen & Toubro Limited’s shareholders have approved a Scheme of Arrangement to transfer its Realty Undertaking to its wholly-owned subsidiary, L&T Realty Properties Limited. The meeting, convened by the NCLT, confirmed the resolution with the requisite majority. This strategic move aims to provide a dedicated platform for the realty business, allowing for sharper focus and agility, without diluting existing shareholder interests.
Shareholders Approve Major Restructuring
On August 4, 2026, Larsen & Toubro Limited (L&T) convened a meeting of its Equity Shareholders, as directed by the Hon’ble National Company Law Tribunal (NCLT). The primary agenda was to consider and approve the proposed Scheme of Arrangement between L&T and its wholly-owned subsidiary, L&T Realty Properties Limited (LTRPL). This scheme involves the transfer of L&T’s Realty Undertaking to LTRPL.
Rationale and Expected Impact
The proposed arrangement is designed to create a more focused and agile platform for L&T’s growing realty business. This strategic restructuring is expected to enhance operational efficiency, allow for greater capital allocation flexibility, and improve valuation visibility for the realty segment. The transfer is proposed as a slump sale of the Realty Undertaking on a going-concern basis, with the consideration being discharged through the issuance of fully paid-up equity shares by LTRPL to L&T.
Mr. S. N. Subrahmanyan, Chairman & Managing Director, highlighted that this proposal does not involve any dilution of existing shareholding in L&T. LTRPL will continue to be a wholly-owned subsidiary, with no change in ownership, voting rights, or shareholder interests.
Meeting Outcome
The meeting, held through Video Conferencing (VC) / Other Audio-Visual Means (OAVM), saw 116 Members in attendance. The resolution for the approval of the Scheme of Arrangement was put to vote and was passed by the requisite majority of the shareholders, as confirmed by the Scrutinizer’s Report. The e-voting process, including remote e-voting, concluded on August 3, 2026, with the in-meeting voting facility available until August 4, 2026. The voting results indicate overwhelming support for the resolution.
Source: BSE
