L&T has announced to buy 21% stake in E2E Network with an investment of Rs 1,407 crore. E2E Network is a cloud service data center company. Let us tell you that as per the exchange filing of September 21, 2024, Ashish Kacholia has bought 1,77,043 shares in the company.

What does E2E Networks do-E2E Networks provides cloud platform services for AI workloads. Which provides cloud GPU and cloud technology services to build and sell AI/ML/GenAI applications on compute clusters. E2E Cloud becomes the first Indian public cloud platform to introduce H100 starting November 2023. E2E Cloud entered the cloud GPU market in India with its V100 GPU deployment in September 2018.

L&T will first be issued 29.79 lakh equity shares of E2E Networks with a face value of ₹10 each, amounting to ₹3,622.25 per share, raising a total amount of ₹1,079 crore. This is about 24% lower than E2E Networks' Monday closing price. The initial stake purchase by L&T will be up to 15% through preferential allotment of shares.

In addition, L&T will buy another 6% stake for Rs 328 crore. This stake will be bought at a price of Rs 2,750 per share, which is 43% lower than E2E Networks' Monday closing price. Under the agreement, L&T will nominate a maximum of two directors to the board of E2E Networks. Currently, there are eight directors on the board, of which three must be independent directors.