Engineering and infrastructure conglomerate Larsen & Toubro Ltd. (L&T) will acquire up to 21 percent stake in E2E Networks Ltd. through a preferential share issue, it said in an exchange filing on Tuesday (November 5).

L&T will first receive 29.79 crore shares of E2E Networks, which have a face value of ₹10 each, at a price of ₹3,622.25 each, for a total consideration of ₹1,079 crore. The issue price is at a discount of nearly 24% to E2E Networks’ Monday closing price.

The initial stake acquisition by L&T through a preferential share issue will be up to 15%.

In addition, L&T will acquire a secondary stake of another 6% for a total investment of ₹328 crore.

The agreement gives L&T the right to nominate up to two directors to the board of E2E Networks, which has eight directors on its board, of which three are required to be independent directors.

L&T can nominate these directors as long as it manages to hold 10% of the total shareholding of E2E Networks.

E2E Networks shares are up 800% in the last 12 months.

This is a developing story.