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L&T expands semiconductor business through Rs 183 crore Siliconch acquisition

BNE News Desk , July 9, 2024
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New Delhi: Larsen & Toubro Ltd., a large engineering and infrastructure company, revealed on Tuesday that its wholly-owned subsidiary L&T Semiconductor Technologies Ltd. has agreed to purchase 100p percentage of SiliConch Systems Pvt. Ltd. through a share purchase agreement.

The purchase will involve an initial payment of Rs 133 crore, with an additional Rs 50 crore to be paid over four years contingent on meeting specific goals and conditions. The complete purchase cost for L&T amounts to Rs 183 crore.

L&T foresees that the acquisition will bring Intellectual Property (IP), engineering abilities, and design knowledge to enhance its position in the fabless semiconductor industry, aligning with the growth plan of L&T Semiconductor Technologies. L&T stated in a filing that the purchase is anticipated to be completed by September 15, 2024, pending standard closing requirements.

Established in April 2016, SiliConch Systems Pvt. Ltd. is headquartered in Bengaluru and focuses on creating semiconductor Intellectual Property (IP) and Integrated Circuits (IC). During the periods 2022 to 2024, SiliConch recorded revenue amounts of Rs 11.02 crore, Rs 19.97 crore, and Rs 27.68 crore sequentially.

On Monday, L&T secured a significant order from a top developer in the Middle East to construct two solar PV plants with a total capacity of 3.5 GW, valued at ₹15,000 crore. L&T categorizes orders between Rs 10,000 crore and  Rs 15,000 crore as 'mega' orders.

The company's energy hydrocarbon vertical secured an order from ONGC ltd for the eighth phase of the pipeline replacement project off the west coast of India last week. L&T labeled the order as "significant", indicating that its value falls between Rs 1,000 crore and Rs 2,500 crore.