L&T Shareholders Approve Realty Undertaking Transfer to L&T Realty Properties with 99.07% Votes in Favour
Strong Shareholder Approval for L&T Realty Consolidation
Larsen & Toubro shareholders have approved the proposed Scheme of Arrangement to transfer its Realty Undertaking to its wholly-owned subsidiary L&T Realty Properties Limited, with the resolution passed with 99.07% of votes in favour at the National Company Law Tribunal (NCLT)-convened meeting of equity shareholders held on August 4, 2026.
A total of 98,90,35,138 votes were polled out of 1,37,57,29,178 shares held, representing a voter turnout of 71.89%. The Scrutinizer's consolidated report confirmed that 4,907 equity shareholders (95.82% of total voters) voted in favour through remote e-voting and e-voting at the meeting, representing 97,98,34,038 votes.
Transaction Structure and Valuation
L&T will transfer its entire Realty Undertaking to L&T Realty Properties Limited through a slump sale on a going-concern basis, with the transaction valued at an enterprise value of ₹6,300 crore, and consideration to be settled through the issuance of fully paid-up equity shares by LTRPL to L&T.
The consideration involves issuance of 3,93,53,93,685 equity shares of LTRPL at ₹16 per share. The scheme will take effect from the Appointed Date of April 1, 2026.
No Impact on Existing Shareholders
There will be no dilution of existing L&T shareholders, LTRPL will continue to remain a 100% wholly-owned subsidiary of L&T, and shareholding, voting rights and ownership structure of L&T shareholders remain unchanged.
Strategic Rationale
Chairman and Managing Director S. N. Subrahmanyan said the restructuring is aimed at creating a dedicated platform for the real estate business to accelerate future growth. Subrahmanyan stated that the transfer requires periodic capital infusion, and therefore it is essential to bring all the real estate operations under a singular corporate structure and bolster L&T Realty's position as a unified brand for real estate.
L&T Realty's Current Portfolio
L&T established its Realty Business Unit in 2007, and in 2011 founded L&T Realty as a wholly-owned subsidiary to develop both L&T land holdings and joint-venture opportunities. Over the years, L&T Realty has delivered premium residential, commercial and mixed-use developments across India's most dynamic urban centres — Mumbai, Navi Mumbai, Bengaluru, NCR, Chennai and Hyderabad. The company has an extensive portfolio spanning 70 million square feet across residential, commercial and retail developments.
Regulatory Backdrop
The National Company Law Tribunal waived formal creditor meetings, requiring written representations instead, while L&T enabled electronic voting and published full scheme details on its website. The company disclosed the development in a regulatory filing under Regulation 30 and Regulation 44 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.