NEW DELHI: The board of directors of Larsen & Toubro (L&T) has approved the transfer of its real estate business (Realty BU) to L&T Realty Properties (L&T Realty), a wholly owned subsidiary of the company, through a scheme sale.This move marks the beginning of a phased consolidation of all of L&T’s real estate assets and businesses and establishes them under L&T Realty.
N Subrahmanyan, Chairman and Managing Director of L&T, said: “L&T Realty must perform independently. It must continuously expand its project pipeline through proactive growth of land banks and joint developments. This requires periodic capital infusion and therefore it is essential to bring all our real estate businesses under a single corporate structure and strengthen L&T Realty’s position as a unified real estate brand. The proposed transfer is the first step in creating a consolidated powerhouse that can redefine the future of urban development. India.”
The business unit’s standalone revenue from operations stood at ₹640.57 crore, while net assets stood at ₹2,148.86 crore for the half-year ended September 30, 2025.On the commencement of the Scheme and on transfer and acquisition of the Realty BU, L&T Realty will issue 3,93,53,93,685 fully paid-up equity shares of face value of ₹10 each to the Company, each at a premium of ₹6, and, if an adjustment is required in accordance with the Scheme, payable in value to the Company.
This move “will enable L&T Realty to raise financial resources through equity and debt from investors, strategic partners and collaborations,” the company said in a BSE filing.
“The strategy is anchored on deepening presence in major metros, supporting the positioning of premium and luxury brands, pursuing disciplined land acquisitions, strengthening partnerships for co-developments and navigating market cycles with institutional rigor,” Subrahmanyan said.
L&T set up Realty BU in 2007 to convert freehold land plots into residential and commercial developments. In 2011, the company established L&T Realty as a wholly owned subsidiary and entrusted it with a mandate to develop both L&T land holdings and joint venture opportunities.
Currently, L&T Realty has a development potential of 65 million sq ft, spread across residential communities, prime commercial spaces and retail developments on the main streets.
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