L&T Seeks Shareholder Nod for Director Appointments and Related Party Transactions
Larsen & Toubro has issued a postal ballot notice for seven resolutions, including three key board appointments and approvals for related party transactions worth ₹57,950 crores. The company proposes to appoint Mr. Amitabh Kant and Mr. B. Santhanam as independent directors for five-year terms starting October 29, 2025, and re-appoint Ms. Preetha Reddy for another five-year term from March 1, 2026. The related party transactions involve four subsidiaries and are crucial for L&T's Carbon Lite Solutions business and international operations. E-voting for shareholders will run from December 20, 2025, to January 18, 2026, with results to be declared by January 20, 2026.
*this image is generated using AI for illustrative purposes only.
Larsen & Toubro has announced a comprehensive postal ballot notice dated December 8, 2025, seeking shareholder approval for seven critical resolutions through electronic voting. The engineering and construction major is proposing significant board changes and material related party transactions that will shape its operational framework.
Board Appointments and Re-appointments
The company seeks approval for three key directorial appointments. Mr. Amitabh Kant (DIN: 00222708) and Mr. B. Santhanam (DIN: 00494806) are proposed as independent directors for five-year terms effective October 29, 2025. Additionally, Ms. Preetha Reddy (DIN: 00001871) is up for re-appointment as independent director for five years commencing March 1, 2026.
| Director Details | Mr. Amitabh Kant | Mr. B. Santhanam | Ms. Preetha Reddy |
|---|---|---|---|
| DIN | 00222708 | 00494806 | 00001871 |
| Term Start | October 29, 2025 | October 29, 2025 | March 1, 2026 |
| Term Duration | 5 years | 5 years | 5 years |
| Status | New Appointment | New Appointment | Re-appointment |
Mr. Amitabh Kant brings extensive governance and policy expertise, having served as G20 Sherpa to the Prime Minister of India and CEO of NITI Aayog. Mr. B. Santhanam contributes 45 years of experience with Saint-Gobain Group, including leadership roles across glass, construction materials, and industrial sectors. Ms. Preetha Reddy, Vice Chairperson of Apollo Hospitals Group, continues her association with the company's board.
Material Related Party Transactions
The postal ballot includes approval for substantial related party transactions totaling ₹57,950.00 crores across four subsidiary companies. These transactions are essential for the company's Carbon Lite Solutions business and international operations.
| Subsidiary | Transaction Value | Nature of Business |
|---|---|---|
| LT-MHI Power Boilers Private Limited | ₹11,400.00 crores | Boiler design, engineering, manufacturing |
| LT-MHI Power Turbine Generators Private Limited | ₹4,000.00 crores | Turbine generator manufacturing |
| Larsen Toubro Arabia LLC | ₹14,000.00 crores | Parent company guarantees |
| LT Modular Fabrication Yard LLC | ₹28,550.00 crores | Modular fabrication services |
Power Equipment Subsidiaries
The transactions with LT-MHI Power Boilers Private Limited and LT-MHI Power Turbine Generators Private Limited support the company's thermal power projects. These joint ventures with Mitsubishi Heavy Industries provide critical components for Engineering, Procurement and Construction (EPC) contracts in the power sector.
International Operations Support
Larsen Toubro Arabia LLC requires parent company guarantees up to ₹14,000.00 crores for project performance in Saudi Arabia. The company will charge a fee of 0.35% per annum for performance guarantees, generating guarantee income while supporting subsidiary operations.
LT Modular Fabrication Yard LLC in Oman provides specialized fabrication services for offshore energy projects. The facility handles structures for oil & gas and offshore wind farm projects, with annual capacity to deliver modules up to 100,000 MT.
Voting Process and Timeline
The e-voting process will be conducted exclusively through NSDL's electronic platform, with no physical ballot forms accepted. The voting schedule provides clear timelines for shareholder participation.
| Event | Date/Time |
|---|---|
| Notice Dispatch Completion | December 19, 2025 |
| E-voting Start | December 20, 2025 (9:00 AM IST) |
| E-voting End | January 18, 2026 (5:00 PM IST) |
| Results Declaration | On or before January 20, 2026 |
| Cut-off Date | December 13, 2025 |
Shareholders registered as of the cut-off date December 13, 2025, are eligible to participate in the voting process. The company has appointed Mr. S.N. Ananthasubramanian and Mrs. Aparna Gadgil as scrutinizers to ensure fair and transparent conduct of the postal ballot.
Business Rationale
The proposed related party transactions align with the company's strategic focus on Carbon Lite Solutions and international expansion. The power equipment subsidiaries leverage Mitsubishi Heavy Industries' technology to enhance the company's competitiveness in thermal power projects. International subsidiaries enable compliance with local regulations and facilitate project execution in Middle Eastern markets.
All transactions are proposed to be conducted at arm's length basis and in the ordinary course of business, with appropriate approvals from the Audit Committee and Board of Directors. The company's Related Party Transaction Policy governs these arrangements, ensuring compliance with regulatory requirements and shareholder interests.
Historical Stock Returns for Larsen & Toubro
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +1.05% | -0.01% | +1.34% | +12.49% | +9.61% | +229.88% |
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