Rs 5,10,100 Crore Order Book: Civil Construction Company Acquires 21% stake in E2E Networks & Enters into Strategic Partnership to Accelerate Cloud and AI Innovation for Indian Enterprises
The stock is up 22.5 per cent from its 52-week low and gave multibagger returns of over 150 per cent in the last 3 years.
Larsen & Toubro (L&T), India’s premier tech-led conglomerate, has announced a strategic partnership with E2E Networks, an Indian Cloud and AI Cloud provider. The partnership is a significant step towards the adoption of GenAI solutions in India to foster a fundamental shift in the way Accelerated Computing on Cloud is used by Indian organizations. The transformative journey for organizations in AI adoption is a fundamentally different approach to implementing GenAI software solutions using Cloud GPUs to utilize an organization’s deep learnings to deploy and evolve production-grade self adapting AI Software. L&T will also acquire a 21% equity stake in E2E Networks through a combination of primary and secondary transactions.
Under this alliance, L&T will integrate E2E Networks’ Cloud and AI Cloud platform with its expertise in data center management and cloud solutions towards empowering startups, and enterprises. The collaboration aims to accelerate digital transformation for a diverse range of industries, fostering a technology-driven, sustainable future for India.
Mr Tarun Dua, Chairman and Managing Director of E2E Networks, added, “The strategic collaboration between E2E Networks and L&T marks a significant milestone for the future of adoption of domestically built HyperScaler Cloud Platforms in India. The partnership marks the next step in the journey towards ‘Make in India’ for running production-grade traditional CPU workloads and GPU-led GenAI innovation in India. The narrative in India has changed from being viewed as a digital colony to that of evolving into a provider of sovereign cloud platforms to the world.”
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Ms. Seema Ambastha, Chief Executive of L&T Data Center and Cloud Business, emphasized the importance of the partnership, saying, “Collaborating with E2E Networks allows us to offer our clients seamless, scalable and secure cloud experiences. By combining our capabilities, we are delivering a cloud ecosystem designed for businesses in India that want to drive growth, optimize costs and unlock the full potential of AI and digital transformation.”
About the Company
Larsen & Toubro (L&T) is a massive Indian conglomerate with its fingers in many pies. Their core business is engineering, procurement and construction (EPC) solutions across various sectors like infrastructure, power, hydrocarbon (oil & gas) and defence. They also manufacture custom-designed machinery for these industries and even have a real estate arm. L&T is a major player in IT services through subsidiaries like L&T Infotech and Mindtree and provides financial services like rural and housing finance through L&T Finance Holdings. They even handle development projects involving infrastructure, toll management and power generation.
The company has a market cap of Rs 4.90 lakh crore and has been maintaining a healthy dividend payout of 34.6 per cent. Life Insurance Corporation of India (LIC) owns a 12.31 per cent stake in the company as of September 2024. The company has a robust order book valued at Rs 5,10,100 crore as of September 30, 2024. The stock is up 22.5 per cent from its 52-week low and gave multibagger returns of over 150 per cent in the last 3 years. Investors must keep this Large-Cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.