Larsen & Toubro has announced the execution of a Business Transfer Agreement for the transfer of its e-commerce platform business to a wholly owned subsidiary. The transaction, executed on February 24, 2026, involves the transfer of the SuFin business pertaining to industrial and construction goods to SuFin Limited through a slump sale arrangement.

Transaction Details

The business transfer involves several key parameters that highlight the scope and financial implications of the deal:

The transaction is structured as a related party transaction and is being carried out at arm's length, ensuring compliance with regulatory requirements.

Financial Performance of SuFin Business

The SuFin business being transferred represents a relatively small portion of Larsen & Toubro's overall operations. The financial metrics for FY 2024-25 demonstrate the business unit's contribution:

These figures indicate that while the SuFin business maintains a positive net worth, it constitutes a minimal percentage of the company's total revenue and net worth.

Entity Details and Business Areas

SuFin Limited was incorporated on January 2, 2026, as a newly formed company specifically to carry on the e-commerce platform business for industrial and construction goods. The company currently has nil revenue as it was recently incorporated.

Larsen & Toubro Limited, with standalone revenue of ₹1,42,509.01 crore for FY 2024-25, operates as a diversified industrial conglomerate. The company's business spans multiple sectors including:

• Construction and engineering
• Manufacturing and technology
• Global infrastructure and industrial machinery
• Precision engineering and hydrocarbon
• Heavy engineering and energy
• Ship building, aerospace, mining and minerals

Regulatory Compliance

The proposed transaction is undertaken through a Business Transfer Agreement and falls outside the Scheme of Arrangement. According to the company's disclosure, the SuFin business does not meet the threshold requirements for an "Undertaking" under Section 180(1)(a) of the Companies Act, 2013, and Regulation 37A of SEBI LODR Regulations.

The transaction has been structured to ensure full compliance with SEBI Listing Regulations and the master circular requirements. The company has provided comprehensive disclosures as mandated under Regulation 30 of SEBI LODR, ensuring transparency for stakeholders and regulatory authorities.

Larsen & Toubro executed a significant block trade on the National Stock Exchange (NSE) worth ₹68.13 crores, highlighting substantial institutional trading activity in the engineering and construction major's shares.

Transaction Details

The block trade involved key parameters that demonstrate the scale of institutional interest:

Understanding Block Trades

Block trades represent large-volume transactions typically executed by institutional investors, mutual funds, or other significant market participants. These trades are conducted through special trading mechanisms designed to handle substantial volumes without causing significant price disruption in the regular market.

The execution of such a sizeable transaction indicates active institutional participation in Larsen & Toubro's stock, reflecting the company's continued relevance in institutional portfolios. Block trades often occur when large investors need to adjust their positions while minimizing market impact.

Market Implications

The substantial value of ₹68.13 crores involved in this single transaction underscores the liquidity and institutional appeal of Larsen & Toubro shares. Such block trades are typically pre-negotiated between parties and executed at mutually agreed prices, providing an efficient mechanism for large-scale share transfers.