Larsen and Toubro said it will acquire up to 21% stake in E2E Networks Ltd. 

What Happened: L&T will invest ₹1,407.02 crore in the small-cap company to acquire 41.71 lakh shares or 21% of E2E Networks.

L&T will invest 15% through a preferential allotment of 29.79 lakh shares for ₹3,622.25 per share, which adds up to ₹1,079.27 crore. L&T will invest the remaining 6% through a secondary acquisition of 11.91 lakh shares at ₹2,750 per share, totalling ₹327.75 crore. 

The stake acquisition is expected to be completed by December 31.

E2E Network is engaged in cloud services and data centres. E2E Network leverages its partnership with Nvidia to help its customers carry out large-scale general and AI workloads. 

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The company has also partnered with Intel, AMD, HPE, Microsoft and Dell.  E2E Networks logged a turnover of ₹94.46 crore in FY24 

In its Q2 results, L&T reported a 5% year-on-year jump in net profit to ₹3,395 crore. The engineering major's revenue surged 20% from the previous year to ₹61,555 crore. 

Price Action: Shares of L&T were down 0.23% to ₹3,566.30  while E2E Networks shares gained 5% and hit the upper circuit at 5% at ₹4,977.50 on Tuesday. 

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