E2E Networks saw a 5% increase in share price on November 5, following Larsen & Toubro’s (L&T) announcement of its intention to acquire a 21% stake in the company for over Rs 1,000 crore. E2E Networks specializes in providing CPU and GPU-based cloud computing platforms, and the acquisition is expected to be finalized by December 31.
E2E Networks reached an all-time high of Rs 4,977.50 per share on the NSE. In contrast, L&T’s shares faced selling pressure, trading at Rs 3,561.90, down 0.35%.
The investment will occur through a preferential allotment for a 15% stake, involving the issuance of 2,979,579 equity shares at Rs 3,622.25 per share, totaling Rs 1,079.27 crore. Additionally, there will be a secondary acquisition of a 6% stake, comprising 1,191,831 shares from the founder at Rs 2,750 per share for Rs 327.75 crore.
E2E Networks operates as an Infrastructure Cloud and AI/ML/GenAI Cloud Platform, providing GPU-as-a-Service solutions to mid-sized enterprises, startups, and research institutions across ten countries. The company serves over 3,000 active clients and is notable for being the first in India to offer both NVIDIA H100 and H200 GPUs as a service on its public cloud. E2E Networks has also formed strategic partnerships with leading OEMs, including NVIDIA, Intel, AMD, HPE, Microsoft, and Dell.So far in 2024, the company has delivered impressive returns of over 620%.
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