L&T Shareholders Approve Scheme to Transfer Realty Undertaking to Subsidiary
Larsen & Toubro Limited (L&T) shareholders approved the proposed Scheme of Arrangement concerning the transfer of its realty undertaking to its wholly-owned subsidiary, L&T Realty Properties Limited. The meeting was held on August 4, 2026, and the resolution passed by the requisite majority.The scheme involves transferring the realty business from Larsen & Toubro Limited (the Transferor Company) to L&T Realty Properties Limited (Transferee Company), as mandated by the National Company Law Tribunal (NCLT). This reorganization is designed to establish a dedicated platform for the realty segment, providing sharper strategic focus and enhanced operational agility.
During the meeting, S. N. Subrahmanyan, Chairman and Managing Director of the company, briefed shareholders on the proposal. He affirmed that the scheme does not involve any dilution of shareholder interests in L&T, as L&T Realty Properties Limited will remain a wholly-owned subsidiary.
The transfer of the realty undertaking is structured as a slump sale at an enterprise value of ₹6300 Crs. The consideration for this transaction will be discharged through the issuance of fully paid up equity shares by L&T Realty Properties Limited to Larsen & Toubro Limited.
Strategic Rationale and Business Scope
The rationale behind the restructuring centers on leveraging the strong market presence that L&T Realty has established across residential, commercial, and mixed-use developments in leading urban centres such as Mumbai, Navi Mumbai, Bengaluru, NCR, and Chennai. The business currently holds an estimated development potential of approximately 71 million square feet.Speaking to shareholders, Mr. Subrahmanyan noted that the realty business unit achieved pre-sales of approximately ₹10,000 Crs during FY 2025-26, contributing about 0.59% of the consolidated revenue. The company plans an accelerated growth strategy focused on land acquisitions and joint developments over the next five years.
Voting Results Overview
The resolution seeking approval for the Scheme was put to vote by special majority through remote e-voting (conducted from July 31, 2026, to August 3, 2026) and e-voting at the meeting. Quorum was confirmed with 116 members attending the meeting via Video Conferencing.The following table summarizes the key voting results for the Scheme of Arrangement:
| Category | Total Shares on Record Date | Percentage Voted | Total Votes Polled | % of Total Shares |
|---|---|---|---|---|
| Total | 1,37,57,29,178 | 71.8917% | 98,90,35,138 | 71.8917% |
The voting results across the company's equity base are detailed below:
| Category | Mode of Voting | No. of Shares Held | % of Total Shares | Votes For | % of Valid Votes For |
|---|---|---|---|---|---|
| Public Institutions | E-voting | 84,85,37,194 | 92.8010% | 77,82,96,035 | 98.8374% |
| Total | 84,85,37,194 | 92.8010% | 77,82,96,035 | 98.8374% | |
| Public Non-Institutions | E-voting | 52,71,91,984 | 38.2374% | 20,15,38,003 | 99.9770% |
| Total | 52,71,91,984 | 38.2374% | 20,15,38,003 | 99.9770% |
Voting Breakdown
The Scrutinizer's Report confirmed the outcomes of both remote e-voting and e-voting conducted during the meeting on August 4, 2026. The resolution was determined to have been approved by a majority of shareholders exercising their voting rights representing three-fourths in the value of the equity shares held by them.| Outcome | Mode of Voting | No. of Shareholders Voted | % of Total Shareholders | No. of Votes Cast | % of Valid Votes Cast |
|---|---|---|---|---|---|
| In Favour | Remote E-Voting | 4,898 | 95.6454% | 979,833,290 | 99.0696% |
| E-Voting at Meeting | 9 | 0.1757% | 748 | 0.0001% | |
| Total In Favour | 4,907 | 95.8211% | 979,834,038 | 99.0697% | |
| Against | Remote E-Voting | 213 | 4.1593% | 9,201,097 | 0.9303% |
| E-Voting at Meeting | 1 | 0.0195% | 3 | 0.0000% | |
| Total Against | 214 | 4.1789% | 9,201,100 | 0.9303% |
No invalid votes were noted across either the remote e-voting or the meeting's e-voting process. The Board has been authorized to undertake all necessary actions required for implementing the scheme and addressing any future challenges.
LT Stock Price Movement
Larsen & Toubro Limited shares today slipped by 0.87% as the stock closed at ₹3990 after a volatile trading session. The equity saw some heavy interest during the day, finishing just above its intraday low of ₹3988.2.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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