Larsen & Toubro Limited (L&T) announced today that it will acquire a 21 per cent stake in E2E Networks Limited, a Delhi-based cloud services company, for approximately ₹1,407 crore. The deal is expected to be completed by December 31, 2024.
The shares of Larsen & Toubro Limited (L&T) Limited were trading at ₹3,546.65 up by ₹27.80 or 0.78 per cent on the NSE today at 11.35 am.
The acquisition involves a 15 per cent stake through preferential allotment for ₹1,079.27 crore at ₹3,622.25 per share, and an additional 6 per cent stake via secondary acquisition from the founder for ₹327.75 crore at ₹2,750 per share.
E2E Networks, founded in 2009 and listed on NSE in 2018, specializes in GPU-based cloud computing platforms and serves over 3,000 active clients across 10 countries. The company is notable for being the first in India to offer both NVIDIA H100 and H200 GPUs as a service on their public cloud.
As part of the deal, L&T will gain the right to nominate two directors on E2E Networks’ board and will enter into software license, reseller, and co-location agreements with the company. However, L&T will remain a minority shareholder with certain protective rights.
E2E Networks reported operational revenue of ₹94.46 crore in FY 2023-24, up from ₹66.20 crore in the previous fiscal year. The company has strategic partnerships with major technology firms including NVIDIA, Intel, AMD, HPE, Microsoft, and Dell.
