E2E Networks is an cloud company offering public cloud services to its customers. E2E Networks specializes in providing CPU and GPU-based cloud computing platforms, to help its customers carry out large scale general and AI-workloads by leveraging its relationship with NVIDIA. It had recorded a turnover of Rs 94.49 crore in FY 2023-24.
Offering the rationale for the said acquisition, L&T said that the acquisition is complementary for 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 co-location agreement with E2E Networks.
L&T would acquire a total of 41,71,410 equity shares (comprising of an aggregate 21% of the capital) of E2E Networks.
The investment would take the form of preferential allotment for 15% stake in E2E Networks, comprising of 29,79,579 equity shares of E2E Networks, for Rs 1,079.27 crore at Rs 3,622.25 per share.
The investment would also involve a secondary acquisition of 6% stake, comprising of 11,91,831 equity shares in E2E Networks from the founder for Rs 327.75 crore at Rs 2,750 apiece.
“The company will not acquire control in E2E Networks pursuant to the proposed acquisition and will be a minority shareholder with certain protective rights,” L&T said in a statement.
Larsen & Toubro (L&T) is an Indian multinational engaged in EPC Projects, hi-tech manufacturing and services. It operates in over 50 countries worldwide. A strong, customer–focused approach and the constant quest for top-class quality have enabled L&T to attain and sustain leadership in its major lines of business for eight decades.
The company reported 5.36% increase in consolidated net profit to Rs 3,395.29 crore in Q2 FY25 on 20.64% jump in revenue from operations to Rs 61,554.58 crore in Q2 FY25 over Q2 FY24.
The scrip shed 0.53% to currently trade at Rs 3554.50 on the BSE.