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Shares of L&T Technologies Services (LTTS) dipped 5.5 per cent to Rs 3,441 on the BSE in Friday’s intra-day trade after the company informed the stock exchanges that it agreed to acquire the Smart World & Communications business (SWC) of its parent company Larsen & Toubro (L&T) by way of slump sale for a consideration of Rs 800 crore.
At 09:30 AM; the stock traded 5 per cent lower at Rs 3,459.80, as compared to 0.30 per cent decline in the S&P BSE Sensex. It quoted at its lowest level since October 2022. LTTS had hit a 52-week low of Rs 2,923 on July 4, 2022.
LTTS said the proposed acquisition is a progression of the company’s 6 Big Bets strategy that will open new avenues of growth in 5G, Digital Products & AI, and Sustainability.
SWC Business’ capabilities will enhance company’s differentiation in the field of next-gen communications with cutting edge solutions around 5G networks, sustainable spaces, and also offer a full stack of cybersecurity solutions to our global clientele, it said.
The SWC was founded in 2016 to cater to the demand of smart cities and provide smart solutions in the areas of end-to-end communications, city surveillance and intelligent traffic management system for Government & enterprises. The business unit has employee strength of over 700 engineers & annual turnover of over Rs 1,000 crore.
The coming together of the LTTS and SWC teams will address the entire gamut of digital offerings including design, architect, build & operate, effectively catering to the portfolios encompassing NextGen Communications, Sustainable Spaces and Cybersecurity.
5G is expected to have a global impact of $1.3 trillion by 2030 and LTTS with SWC believes that together, it is in a stronger position to continue to win and execute large scale transformational programs in India and globally in this segment, the company said.
The joint team of LTTS and SWC would provide Security Operating Centers (SOC), full lifecycle threat management, OT cybersecurity and product security credentials and address the demands of the projected $376 billion cybersecurity market, it said.
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First Published: Fri, January 13 2023. 09:50 IST
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