L&T Tech share price falls over 5% after SWC acquisition announcement

Its shares closed at ₹3446.95 on BSE on Friday. The company’s shares opened at ₹3625.15. The stock has fallen by 36.28% from its 52-week high mark of ₹5714 reported on January 14,2022.

The engineering services company said on Thursday it will acquire Smart World & Communication (SWC) business of L&T which consists of Safe & Smart, Communication and Cyber Security as a going concern, on a slump sale basis. 

This acquisition will help LTTS in bolstering its global presence in Next-Gen Communications Sustainable Spaces and Cybersecurity. It will also help the tech firm in 5G offerings and services. Notably, the 5G service is expected to have a global impact of 1.3 trillion by 2030.

The acquisition worth ₹800 crore of the SWC company is expected to get completed on or before March 30,2023, notified the company its stock exchange filling. Currently, Larsen and Toubro holds 73.85% shares in the company.

The acquisition will help the company in moving ahead with its 6 Big Bets strategy that will open new avenues of growth in 5g, digital products and 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.

Since its foundation in 2016, Smart World and Communication has expanded its business of Network Operations Center (NOC), OSS, Datacenter, Cloud/Private 5G to over 25,000 locations across India.

It is focused in providing services in smart cities, address opportunities and provide smart solutions in the areas of end-to-end communications, city surveillance and intelligent traffic management system for the Government as well as enterprises. The company crossed its  annual revenue of ₹1,000 crores.

With this acquisition, the company aims to enhance its operation and provide better services including design, architect, build and operate, effectively catering to the portfolios encompassing NextGen Communications, Sustainable Spaces and Cybersecurity.