L&T to Acquire 21% Stake in Cloud Services Firm E2E Networks for ₹1,407 Crore
On Tuesday, infrastructure giant Larsen & Toubro (L&T) announced its plans to acquire a 21% stake in E2E Networks Ltd, a cloud services provider, for ₹1,407.02 crore. This strategic investment strengthens L&T’s presence in the fast-growing cloud and AI services sector.
In a regulatory filing, L&T revealed it signed an investment agreement on November 5, 2024, to purchase up to a 21% stake in E2E Networks. The deal involves an investment of ₹1,079.27 crore for a 15% stake through preferential allotment, with an additional ₹327.75 crore earmarked for a further 6% stake through secondary acquisition. L&T expects to complete the transaction by December 31, 2024.
While L&T will become a minority shareholder in E2E Networks, it will have specific protective rights, though it will not hold control over the company. This acquisition complements L&T’s strategy to tap into AI and cloud services markets. Alongside the equity stake, L&T plans to enter into several key agreements with E2E Networks, including a software license, reseller, and colocation agreement.
Delhi-based E2E Networks Ltd is a homegrown cloud services provider, offering public cloud solutions to a wide range of customers across India.
