L&T to acquire 21% stake in E2E Networks for ₹1,407 crore; stock down 0.6%

Delhi-based E2E Networks Ltd is an Indian cloud company offering public cloud services to its customers.

The move assumes significance as it will increase L&T's reach in cloud and AI services—the key growth areas in the technology sector.

"The company has entered into an investment agreement on November 5, 2024, for the acquisition of up to a 21% stake in E2E Networks Ltd," L&T said in a regulatory filing.

The acquisition of the stake in E2E Networks is likely to be completed by December 31.

L&T will not acquire control in E2E Networks and will be a minority shareholder with certain protective rights.

"The acquisition is complementary to the market approach in the fast-growing areas of AI and cloud services. Along with the acquisition, the company also proposes to enter into a software license agreement, reseller agreement, and colocation agreement with E2E Networks," the filing said.

Last week, Larsen and Toubro (L&T) posted a 5% rise in consolidated profit after tax to ₹3,395 crore in the September 2024 quarter on account of higher income.

The company's consolidated profit after tax stood at ₹3,223 crore in the year-ago period, L&T said in a regulatory filing.

"The company for the quarter ended September 30, 2024, posted a consolidated profit after tax (PAT) of ₹3,395 crore, registering a growth of five per cent compared to the corresponding quarter of the previous year," the filing said.

During the period under review, its consolidated income rose to ₹62,655.85 crore from ₹52,157.02 crore in the year-ago period.

Its expenses in the September quarter increased to ₹57,100.76 crore against ₹47,165.95 crore a year ago.