In Friday’s intraday session, L&T Technologies Services (LTTS) shares fell 5.5 percent to Rs 3,441 on the BSE after the company said that it will slump sell its parent company Larsen & Toubro’s Smart World & Communications unit (SWC) for Rs 800 crore.
The S&P BSE Sensex fell 0.30 percent while the stock fell 5 percent to Rs 3,459.80 at 9:30 AM. It was lowest since October 2022. On July 4, 2022, LTTS hit Rs 2,923—its 52-week low.
LTTS said the acquisition will expand its 6 Big Bets strategy into 5G, Digital Products & AI, and Sustainability.
SWC Business will differentiate the company in next-gen communications with cutting-edge solutions around 5G networks, sustainable spaces, and a full stack of cybersecurity solutions for global clients, it claimed.
The SWC was created in 2016 to meet smart city demands for end-to-end communications, city surveillance, and intelligent traffic management systems for government and corporations. The business segment employs over 700 engineers and generates around Rs 1,000 crore.
The LTTS and SWC teams will cover design, architect, build, and operate for NextGen Communications, Sustainable Spaces, and Cybersecurity portfolios.
The company added that along with SWC, it is better positioned to win and execute large-scale transformational contracts in India and globally in this area. 5G is estimated to have a global effect of $1.3 trillion by 2030.
It said LTTS and SWC would deliver Security Operating Centers (SOC), full lifecycle threat management, OT cybersecurity, and product security credentials to meet the expected $376 billion cybersecurity market.