Larsen & Toubro has allotted 35,981 equity shares to eligible grantees who exercised their options under the Company's Employee Stock Option Schemes. The allotment was approved by the Nomination & Remuneration Committee (NRC) of the Board on May 5, 2026, as communicated through a regulatory filing addressed to BSE Limited and the National Stock Exchange of India Limited.

ESOP Allotment Details

The key details of the allotment are outlined in the table below:

Share Ranking and Parity

The newly allotted equity shares will rank pari-passu with the existing equity shares of Larsen & Toubro in all respects. This means the allotted shares carry the same rights and entitlements as the existing equity shares of the Company. The regulatory disclosure was signed by Subramanian Narayan, Company Secretary & Compliance Officer of Larsen & Toubro, and submitted to the stock exchanges in compliance with applicable listing obligations.

Larsen & Toubro has successfully completed the divestment of its entire shareholding in L&T Metro Rail (Hyderabad) Limited to Hyderabad Metro Rail Limited for ₹1,461.47 crore. The transaction represents a significant portfolio optimization move as the engineering giant exits its urban transportation infrastructure investment.

Official Transaction Confirmation

According to the official press release issued on April 30, Larsen & Toubro signed the divestment agreement on April 29 with Hyderabad Metro Rail Limited, a fully state-owned enterprise of the Government of Telangana. The comprehensive divestment involved the sale of 741,29,99,999 equity shares, marking the complete exit from this urban infrastructure asset.

Strategic Portfolio Optimization

The divestment represents a value-driven monetisation of a mature infrastructure asset and aligns with L&T's broader strategy of exiting the development projects portfolio. This strategic move enables capital redeployment in core engineering and technology-led businesses, reflecting the company's focus on strengthening its portfolio of core operations.

Mr S N Subrahmanyan, Chairman & Managing Director of L&T, commented: "This transaction reflects L&T's continued focus on creating long-term value and strengthening its portfolio of core, technology-led businesses. Hyderabad Metro Rail project is a world-class asset and a good example of our ability to deliver large-scale infrastructure that transforms cities and improves quality of life."

Project Legacy and Future Expansion

Hyderabad Metro, operated by LTMRHL, represents one of the largest Public-Private Partnership metro rail projects globally. The project spans approximately 69 km across three corridors and has been a landmark urban infrastructure initiative undertaken in partnership with the Government of Telangana. The project has significantly enhanced connectivity in Hyderabad and contributed to economic growth and urban development in the region.

Post acquisition, HMRL has plans to expand the metro network, which will further strengthen this asset's presence in India's fast-growing urban transit sector. Mr D K Sen, Advisor to L&T CMD, Development Projects, noted: "Hyderabad Metro stands as a testament to L&T's capability to conceptualise, execute and operationalise large-scale infrastructure projects under the PPP framework."

Financial Impact and Regulatory Compliance

L&T Metro Rail (Hyderabad) Limited maintained a modest contribution to Larsen & Toubro's consolidated financials prior to the divestment. The subsidiary's operational scale within the parent company's portfolio demonstrates the focused nature of this strategic exit.

The transaction has been conducted under SEBI Regulation 30 of SEBI Listing Obligations and Disclosure Requirements, with official notifications sent to BSE Limited and National Stock Exchange of India Limited. Following completion, the release of corporate guarantees and letters of comfort previously issued by Larsen & Toubro will proceed as Hyderabad Metro Rail Limited refinances existing debt.