L&T expands semiconductor business with acquisition of Siliconch for ₹183 crore

Larsen & Toubro Ltd., an engineering and infrastructure conglomerate, on Tuesday announced that its wholly owned subsidiary, L&T Semiconductor Technologies Ltd., has signed a share purchase agreement to acquire 100% stake in SiliConch Systems Pvt. Ltd.

The acquisition will be made against an upfront payment of ₹133 crore, subject to customary closing adjustments and a deferred amount of ₹50 crore payable over four years, subject to achievement of certain targets and other conditions. This takes the total acquisition cost of L&T to ₹183 crore.

With the acquisition, L&T expects its intellectual property (IP), engineering capabilities and design expertise to strengthen its presence in the fabless semiconductor industry, which is in line with L&T Semiconductor Technologies’ growth strategy.

The acquisition is expected to be completed by September 15, 2024, subject to customary closing conditions, L&T said in a stock exchange filing.

Founded in April 2016, Bengaluru-based SiliConch Systems Pvt. Ltd. specializes in the development and design of semiconductor intellectual property (IP) and integrated circuits (IC).

During fiscal 2022-24, SiliConch reported revenues of ₹11.02 crore, ₹19.97 crore and ₹27.68 crore, respectively.

L&T on Monday bagged a ‘mega’ order worth ₹ 15,000 crore from a leading Middle Eastern developer to set up two gigawatt solar power plants with a combined capacity of 3.5 GW.

L&T classifies orders worth Rs 10,000-15,000 as ‘mega’.

Last week, the company’s energy hydrocarbons arm won an order from ONGC Ltd. for the eighth phase of a pipeline replacement project off India’s west coast. L&T has classified the order as “significant”, meaning the order value is in the range of ₹1,000 crore to ₹2,500 crore.

L&T shares ended Monday’s session largely unchanged at ₹3,631.90. The stock has gained just 3% in 2024 so far.