L&T begins realty consolidation, to move Realty BU to L&T Realty arm

L&T has approved transferring its Realty BU to wholly owned L&T Realty through a slump sale under a scheme, kicking off a phased consolidation of all real estate assets under one entity

The board of directors of Larsen and Toubro (L&T) has approved the transfer of its Realty Business Undertaking (Realty BU) to L&T Realty Properties (L&T Realty), a wholly owned subsidiary of L&T, through a slump sale under a scheme of arrangement.

 

What share issuance has been proposed as part of the scheme? 

Once the scheme takes effect and the Realty BU is transferred to L&T Realty as a going concern on a slump-sale basis, L&T Realty will issue over 393.53 crore fully paid equity shares with a face value of Rs 10 each, at a premium of Rs 6 per share, to L&T. If required under the scheme, L&T Realty will also make additional value adjustments and pay L&T the amount determined accordingly.

 

Why is L&T consolidating real estate assets under L&T Realty? 

L&T said the move marks the beginning of a phased consolidation of all real estate assets and undertakings of L&T and vesting them in L&T Realty, thus creating a unified, future-ready entity capable of capitalising on India’s real estate growth.

 

What did S N Subrahmanyan say about L&T Realty’s funding and growth plans? 

S N Subrahmanyan, chairman and managing director, L&T, said, “L&T Realty needs to perform independently. It has to continuously expand its project pipeline through proactive land bank growth and joint developments. This requires periodic capital infusion, and therefore, it is essential to bring all our real estate operations under a single corporate structure and bolster L&T Realty’s position as a unified brand for real estate. The proposed transfer is the first step in creating a consolidated powerhouse that can redefine the future of urban development in India.”

 

What are the revenues and net worth of the Realty BU and L&T Realty? 

Realty BU’s revenue from operations (standalone) in the first half of financial year 2025-26 (H1 FY26) stood at Rs 640.57 crore, while its net worth as of H1 FY26 stood at Rs 2,148.86 crore. Meanwhile, L&T Realty’s revenue from operations (standalone) during H1 FY26 stood at Rs 202.15 crore.

 

How does L&T Realty plan to expand over the next five years? 

Subrahmanyan added that integration of the Realty BU sets the foundation for L&T Realty to emerge as India’s most admired and sought-after real estate brand in the next five years. “The strategy is anchored in deepening presence across major metros, sustaining premium and luxury brand positioning, pursuing disciplined land acquisitions, strengthening partnerships for joint developments and navigating market cycles with institutional rigour.”

 

What projects and portfolio does L&T Realty currently have? 

L&T Realty has delivered premium residential, commercial and mixed-use developments across Mumbai, Navi Mumbai, Bengaluru, NCR, Chennai and Hyderabad. The company operates in the premium real estate segment and has a portfolio with a development potential of 65 million square feet, spanning upscale residential communities, grade A commercial spaces, and high-street retail developments.