Larsen & Toubro (L&T) has signed an agreement to transfer its Data Centre and Cloud Services Business to its wholly owned subsidiary Vyoma.AI Limited for Rs 1,400 crore, as the engineering major reorganises its data centre operations under a newly incorporated entity.
Under the Business Transfer Agreement (BTA) signed on August 11, L&T will transfer the business to Vyoma on a “going concern basis” through a “slump sale”. The consideration, subject to closing adjustments, will be paid through the issue of fully paid equity shares of Vyoma to L&T.
The transaction is expected to be completed on or before October 31, 2026. The shares to be issued by Vyoma will have a face value of Rs 100 each, with the valuation to be determined by an independent valuer.
The move comes as L&T has set up Vyoma.AI as a dedicated entity for establishing data centres and providing infrastructure and technology-enabled services. Vyoma was incorporated on April 22, 2026 and currently has no revenue or net worth, according to the filing.
L&T’s Data Centre Business generated revenue of Rs 36.6 crore in FY26, accounting for just 0.025% of the company’s standalone revenue. Its net worth stood at Rs 1,142 crore, equivalent to 1.565% of L&T’s standalone net worth.
Alongside the data centre business transfer, L&T has also signed a Share Purchase Agreement to transfer its entire stake in L&T Network Services Private Limited (LTNSPL) to Vyoma for Rs 30 crore. The consideration will also be discharged through the issue of Vyoma equity shares.
LTNSPL had a turnover of Rs 1.86 crore and net worth of Rs 18.31 crore as of March 31, 2026.
Both transactions are classified as related party transactions but, according to L&T, are being carried out at “arms’ length”. The company said the proposed transfer of the Data Centre Business is outside a Scheme of Arrangement and is being undertaken through a Business Transfer Agreement.
