Larsen & Toubro (L&T) has agreed to transfer its data center and cloud services business to Vyoma.AI, a wholly owned subsidiary, for INR14 billion (approx. US$146.7 million) in a slump sale on a going-concern basis, according to Business Standard and the Economic Times. The consideration will be settled by issuing fully paid-up equity shares in Vyoma.AI rather than cash, thereby keeping the business under L&T's indirect ownership.
Alongside the main deal, L&T, Vyoma.AI, and L&T Network Services Pvt Ltd (LTNSPL) signed a separate share purchase agreement transferring L&T's entire stake in LTNSPL to Vyoma.AI for INR300 million, taking the combined consideration to roughly INR14.3 billion, Construction Mirror and stock-market platform ScanX reported. The transaction was executed on August 11, 2026, and is expected to close by October 31, 2026, subject to customary conditions.
The unit being transferred is financially small relative to L&T's overall business: it generated revenue of INR366 million in fiscal 2026, equivalent to about 0.025% of L&T's standalone revenue, against a net worth of INR11.42 billion, or roughly 1.6% of the parent's standalone net worth, ScanX reported. LTNSPL, the smaller entity being folded into Vyoma.AI, had a turnover of just INR18.6 million and a net worth of INR183 million as of March 31, 2026.
L&T said the restructuring is intended to consolidate its data center and cloud infrastructure under a dedicated platform, giving the business room to scale as demand for AI-driven and high-density computing capacity grows in India, Construction Mirror reported. The deal is classified as a related-party transaction conducted at arm's length, structured outside the Companies Act's Scheme of Arrangement framework because Vyoma.AI does not meet the statutory "Undertaking" threshold.
Vyoma.AI, incorporated in April 2026, is already central to L&T's broader data center ambitions. In February 2026, L&T and Vyoma signed an agreement with the Gujarat government to build a 250-megawatt green data center in the Dholera Special Investment Region at an investment of INR250 billion, with operations targeted for 2028, according to All India Radio's newsonair.gov.in. Gujarat has earmarked more than INR8.5 billion in its budget for AI and digital services initiatives, positioning the state to attract further large-scale data center investment.
Article edited by Jack Wu
