Larsen & Toubro (L&T) has entered into an agreement to transfer its data centre and cloud services business to its wholly owned subsidiary Vyoma.AI Ltd for an estimated INR 1,400 crore. The transfer will be carried out on a going-concern basis through a slump sale, according to the company's filing with the BSE. The final consideration will be subject to closing adjustments and will be paid through the issue and allotment of fully paid-up equity shares of Vyoma.AI. 
The shares will have a face value of INR 100 each, with the number of shares to be determined based on the valuation arrived at by an independent valuer. The transaction is therefore structured as an internal transfer of the business into Vyoma.AI rather than a cash transaction. 
In a separate transaction, L&T, Vyoma.AI and L&T Network Services Pvt Ltd (LTNSPL) have entered into a share purchase agreement under which L&T will transfer its entire equity holding in LTNSPL to Vyoma.AI for INR 30 crore, subject to closing adjustments. 
The completion of the LTNSPL sale is expected on or before October 31, 2026, making this the key future date disclosed in the filing. The consideration will also be settled through the issue and allotment of fully paid-up equity shares of Vyoma.AI. 
Once the transaction is completed, LTNSPL will become a direct wholly owned subsidiary of Vyoma.AI and an indirect wholly owned subsidiary of L&T. 
LTNSPL had reported a turnover of INR 1.86 crore and a net worth of INR 18.31 crore as of March 31, 2026. Its turnover represented just 0.001 per cent of L&T's consolidated turnover, while its net worth accounted for 0.025 per cent of the group's consolidated net worth.Vyoma.AI is a newly incorporated public limited company set up by L&T to establish data centres and provide infrastructure and technology-enabled services. L&T had earlier disclosed that the company was created specifically to develop data centres and AI infrastructure. 
The restructuring comes as L&T has been expanding its presence in data centres, cloud infrastructure and AI-related computing. The company's FY2025-26 annual report said its data centre and cloud services business, branded Larsen & Toubro Vyoma, provides colocation, cloud infrastructure, AI-ready computing and managed services. 
The business has already moved beyond the development stage. L&T's annual report noted that its Panvel data centre began colocation operations with 2 MW of capacity in 2024. During FY2025-26, 24 MW of the planned 30 MW capacity at its Chennai data centre had been commissioned, with the remaining 6 MW at an advanced stage of commissioning. 
L&T Vyoma is also developing a larger presence in Navi Mumbai. The company began work on a 40 MW green, AI-ready data centre at Mahape, forming the first phase of a planned 100 MW data centre campus in the city. The facility is intended to support build-to-suit, enterprise and NeoCloud workloads, including high-density computing for AI applications. 
The company has also launched a Sovereign Cloud Platform aimed at enterprise and public-sector users, with a focus on data sovereignty, regulatory compliance and secure AI adoption. 
The completion of both the data centre and cloud business transfer and the LTNSPL share transfer remains subject to the closing conditions agreed under the respective business transfer agreement and share purchase agreement. 
The restructuring gives Vyoma.AI direct ownership of the businesses being transferred while keeping them within the L&T group. This creates a more clearly defined structure for L&T's digital infrastructure activities as demand for data centres, cloud services and AI computing continues to increase in India. 
L&T's FY2025-26 annual report said India's data centre sector was expected to expand from around USD 10 billion currently to approximately USD 22 billion by 2030, with installed capacity projected to increase from about 1.7 GW to 4-5 GW over the same period. It also identified Mumbai, Chennai, Hyderabad and Bengaluru as key data centre markets. 
L&T is a USD 32 billion multinational company with operations spanning engineering, procurement and construction, hi-tech manufacturing, products and services across multiple sectors and geographies. The group has been operating for around eight decades. 
Source PTI