L&T Transfers Data Centre Business To Vyoma.AI For ₹1,400 Crore

Larsen & Toubro (L&T) has entered into an agreement to transfer its data centre and cloud services business to its wholly owned subsidiary Vyoma.AI Ltd for ₹1,400 crore. The transfer will be carried out on a going-concern basis through a slump sale.

The consideration for the transfer will be discharged through the issue of fully paid-up equity shares of Vyoma.AI. The valuation of the business was determined by an independent valuer.

In a separate transaction, L&T, Vyoma.AI, and L&T Network Services Pvt Ltd (LTNSPL) have entered into a share purchase agreement for the transfer of L&T's entire equity holding in LTNSPL to Vyoma.AI for ₹30 crore. The consideration for this transaction will also be discharged through the issue of fully paid-up equity shares of Vyoma.AI.

Following the completion of the transaction, LTNSPL will become a direct wholly owned subsidiary of Vyoma.AI and an indirect wholly owned subsidiary of L&T. The completion of both transactions is subject to the fulfilment of closing conditions agreed under the business transfer agreement and the share purchase agreement.

Vyoma.AI is a newly incorporated public limited company established for the purpose of establishing data centres for providing infrastructure and technology-enabled services. L&T is a USD 32 billion Indian multinational engaged in engineering procurement and construction (EPC) projects, hi-tech manufacturing, products and services, operating across diverse domains and multiple geographies.

The transfer of the data centre business is part of L&T's strategy to focus on its core businesses and monetize its non-core assets. The company has been actively pursuing opportunities to divest its non-core businesses and invest in new areas such as artificial intelligence and technology.

The deal is expected to be completed on or before October 31, 2026. LTNSPL reported a turnover of ₹1.86 crore and a net worth of ₹18.31 crore as of March 31, 2026. The company's turnover accounted for 0.001 per cent of L&T's consolidated turnover, while its net worth represented 0.025 per cent.

The transaction is subject to closing adjustments and the issuance of fully paid-up equity shares of Vyoma.AI. The valuation of the business and the consideration for the transfer will be finalized upon the completion of the transaction.

The deal marks a significant milestone for L&T as it continues to focus on its core businesses and explore new opportunities in the technology sector. The company's strategy to monetize its non-core assets and invest in new areas is expected to drive growth and increase shareholder value.

In conclusion, the transfer of L&T's data centre and cloud services business to Vyoma.AI is a significant development for the company. The deal is expected to drive growth and increase shareholder value, and marks a major milestone in L&T's strategy to focus on its core businesses and explore new opportunities in the technology sector.

The transaction is also expected to have a positive impact on the Indian technology sector, as it demonstrates the growing demand for data centre and cloud services in the country. The deal is expected to drive investment and growth in the sector, and create new opportunities for businesses and individuals alike.

Overall, the transfer of L&T's data centre and cloud services business to Vyoma.AI is a significant development that is expected to have a positive impact on the company and the Indian technology sector. The deal marks a major milestone in L&T's strategy to focus on its core businesses and explore new opportunities in the technology sector, and is expected to drive growth and increase shareholder value.