L&T to fully own offshore shipping JV, acquiring Sapura's 40% stake for ₹1,224 crore
Overview
Larsen & Toubro is set to acquire the remaining 40% stake in L&T Sapura Shipping Private Limited from Sapura Nautical Power for ₹1,224 crore. This move will make the offshore marine construction company a wholly owned subsidiary, strengthening L&T's position in maritime and offshore project execution, especially in growing markets like India and the Middle East. The transaction is slated for completion by January 31, 2026.
Stocks Mentioned
L&T Consolidates Offshore Operations
Larsen & Toubro (L&T) announced Monday its plan to acquire Sapura Nautical Power's 40% stake in their joint venture, L&T Sapura Shipping Private Limited (LTSSPL), for ₹1,223.9 crore. The transaction will transform the offshore marine construction company into a wholly owned subsidiary of the Indian conglomerate.
The acquisition involves purchasing 63.54 crore equity shares at ₹19.26 per share. Upon completion, L&T will hold 100% ownership of LTSSPL, significantly bolstering its presence and capabilities within the maritime and offshore construction segment. This strategic consolidation is expected to enhance operational flexibility and improve asset availability for crucial offshore projects.
Focus on Growth Markets
L&T highlighted that the acquisition is particularly aimed at strengthening its execution capacity for offshore projects in India and the Middle East, regions experiencing increased energy sector activity. The move aligns with L&T's broader strategy to deepen its expertise across its infrastructure and energy portfolios. LTSSPL operates a heavy lift cum pipe-lay vessel used for installing offshore platforms and laying subsea pipelines for the hydrocarbon industry.
The company reported a turnover of ₹154.12 crore for the financial year ended March 31, 2025. In addition to the equity purchase, LTSSPL will fully repay shareholder loans amounting to $16.93 million to Sapura. The transaction, classified as a related party deal, is being conducted on an arm's-length basis and is anticipated to conclude by January 31, 2026, subject to standard closing conditions.
L&T's shares closed nearly flat at ₹4025 on the BSE on Monday.
