Larsen & Toubro has successfully completed its major acquisition, with wholly owned subsidiary L&T Realty Properties Limited (L&T RPL) finalizing the purchase of 100% stake in International Green Scapes Limited for ₹1,123 crores on April 13, 2026. The completion was announced through a regulatory filing on April 14, 2026, confirming that International Green Scapes Limited has become a wholly owned subsidiary of both L&T RPL and Larsen & Toubro.

Acquisition Completion Details

The transaction, which was initially announced on April 10, 2026, reached completion ahead of the scheduled timeline of April 15, 2026. L&T RPL acquired 58,23,425 equity shares representing complete ownership of International Green Scapes Limited through a cash transaction structured under a Share Purchase and Shareholders' Agreement.

Target Company Profile

International Green Scapes Limited, incorporated on November 22, 1993, operates as a real estate company with licenses to develop residential properties in Gurugram, Haryana. The company has maintained nil turnover for the past three financial years, positioning it primarily as a land-holding entity with strategic real estate assets.

Strategic Impact and Regulatory Compliance

The completed acquisition enables L&T RPL to leverage International Green Scapes Limited's land assets for expanding its real estate development portfolio. The transaction was executed without requiring governmental or regulatory approvals and does not fall under related party transactions, as confirmed in the company's regulatory disclosure under Regulation 30 of SEBI LODR.

With the acquisition now complete, Larsen & Toubro strengthens its real estate sector presence through this strategic addition to its subsidiary network, positioning the company for enhanced development capabilities in the residential real estate market.

HSBC has maintained its Hold rating on Larsen & Toubro with a target price of ₹3,900, presenting a balanced view of the engineering and construction major's prospects. The brokerage's assessment reflects both positive execution capabilities and emerging operational challenges that could influence the company's trajectory.

March Quarter Performance Highlights

The brokerage acknowledged Larsen & Toubro's resilient execution during the March quarter, indicating strong operational performance despite market challenges. This execution strength demonstrates the company's ability to deliver on its commitments and maintain project timelines effectively.

Emerging Margin Pressures

HSBC identified several factors that could pressure the company's margins going forward:

Key Risk Factors for FY27

The brokerage highlighted specific risks that could impact Larsen & Toubro's performance in the coming fiscal years. Slower order inflows represent a significant concern for future revenue visibility, while potential disruptions in Middle East operations could affect the company's international business segment.

Investment Outlook

HSBC's Hold rating with a ₹3,900 target price suggests a cautious optimism about Larsen & Toubro's prospects. While the company demonstrated strong execution capabilities in the March quarter, the combination of margin pressures from input costs, foreign exchange volatility, and operational risks requires careful monitoring by investors.