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L&T transfers data centre business to Vyoma.AI for Rs 1,400 crore
Engineering major will also transfer its network services arm for Rs 30 crore
Mumbai: Larsen & Toubro is moving its data centre and cloud services business into its newly incorporated subsidiary Vyoma.AI in a deal valued at Rs 1,400 crore, as the engineering major looks to consolidate its data centre ambitions under a dedicated entity.
The company has signed a Business Transfer Agreement with Vyoma.AI to transfer the business on a going-concern basis through a slump sale. The consideration, subject to closing adjustments, will be paid through fully paid equity shares of Vyoma.AI.
L&T has also signed a separate Share Purchase Agreement to transfer its entire stake in L&T Network Services Private Limited to Vyoma.AI for Rs 30 crore, subject to closing adjustments. The consideration will similarly be paid through equity shares of Vyoma.AI.
The transactions are expected to be completed on or before October 31, 2026, subject to the fulfilment of agreed closing conditions.
Vyoma.AI was incorporated on April 22, 2026, as a public limited company to establish data centres and provide infrastructure and technology-enabled services. The company currently has no revenue or net worth, according to L&T’s disclosure for FY26.
L&T’s data centre and cloud services business generated revenue of Rs 36.6 crore in FY26, accounting for 0.025 per cent of the company’s standalone revenue. Its net worth stood at Rs 1,142 crore, equivalent to 1.565 per cent of L&T’s standalone net worth.
Under the transaction, Vyoma.AI will issue equity shares with a face value of Rs 100 each to L&T. The number of shares will be based on a valuation determined by an independent valuer.
The transaction is a related-party transaction and is being conducted at arm’s length, according to the company. L&T said the transfer is being undertaken through a Business Transfer Agreement and falls outside a Scheme of Arrangement.
L&T Network Services, which provides network-related services, will also become a direct wholly owned subsidiary of Vyoma.AI following the transaction, while remaining an indirect wholly owned subsidiary of L&T.
The company reported turnover of Rs 1.86 crore and net worth of Rs 18.31 crore as of March 31, 2026. L&T will receive Rs 30 crore through the issue of fully paid equity shares by Vyoma.AI, subject to closing adjustments.
Both transactions are part of L&T’s broader effort to house its data centre and technology-enabled infrastructure activities under a dedicated platform. With the transfer, Vyoma.AI will become the direct operating vehicle for the businesses as L&T builds out its presence in the data centre segment.
