Larsen & Toubro Limited has announced the acquisition of its joint venture partner's stake in L&T Sapura Shipping Private Limited (LTSSPL) for a total consideration of ₹122.39 crores. The company executed a Share Purchase Agreement on January 12, 2026, to acquire Sapura Nautical Power Pte Ltd's 40% shareholding in LTSSPL, which will make the shipping entity a wholly owned subsidiary.

Transaction Details

The acquisition involves purchasing 6,35,41,233 equity shares of LTSSPL at ₹19.26 per share. Additionally, LTSSPL will fully repay outstanding shareholders' loans aggregating US$16.93 million to Sapura as part of the transaction structure.

About L&T Sapura Shipping

LTSSPL was incorporated on September 2, 2010, as a 60:40 joint venture between Larsen & Toubro and Sapura Nautical Power. The company owns and operates a Heavy Lift cum Pipe Lay Vessel (HLPV) used for installation of offshore platforms and laying of pipes and cables under the sea for the hydrocarbon upstream industry.

The company operates in the oil and gas, maritime and shipping sectors, with its business complementing L&T's core engineering and construction operations.

Financial Performance

LTSSPL has demonstrated varying revenue performance over the past three financial years, with the most recent year showing strong results:

Strategic Impact

The acquisition strengthens Larsen & Toubro's operational flexibility and asset availability for execution of offshore projects, particularly in India and the Middle East. LTSSPL's operations in the offshore marine construction segment align with L&T's engineering and construction businesses, providing enhanced capabilities in the hydrocarbon sector.

The transaction is structured as a related party transaction under Section 2(76) of the Companies Act, 2013, and SEBI Listing Regulations, conducted on an arm's length basis. No governmental or regulatory approvals are required for completion of this acquisition.

Larsen & Toubro has announced a major acquisition in the shipping sector, acquiring a 40% stake in L&T Sapura Shipping Private Limited from Sapura Nautical Power. This strategic transaction represents a significant investment by the engineering and construction conglomerate in expanding its maritime operations.

Deal Structure and Financial Details

The acquisition involves substantial financial commitment from Larsen & Toubro, with the deal structured at competitive market rates.

Transaction Timeline

The deal follows a structured timeline with a clear completion target set for early 2026.

Strategic Implications

This acquisition strengthens Larsen & Toubro's position in the shipping and maritime sector through L&T Sapura Shipping Private Limited. The transaction involves acquiring the stake from Sapura Nautical Power, indicating a potential restructuring of ownership in the joint venture entity. The deal value of ₹1,223.90 crores represents a substantial investment in the company's maritime portfolio expansion.

The pricing at ₹19.26 per share provides insight into the valuation of the shipping entity, while the extended timeline until January 2026 suggests the transaction may involve regulatory approvals or other completion conditions typical of such strategic acquisitions in the shipping industry.