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Larsen & Toubro’s (L&T) technology arm, L&T Infotech, on Monday filed an offer document with the Securities and Exchange Board of India (Sebi). The engineering giant is planning to sell 17.5 million shares (about 10.8 per cent) in L&T Infotech through the initial public offerings (IPO). “The issue comprises of an offer for sale of up to 17,500,000 equity shares of the face value Rs 1 each by Larsen & Toubro Limited,” L&T said in a statement filed to BSE.
According to reports, the L&T is eyeing valuations of between Rs 16,000 crore and Rs 18,000 crore for L&T Infotech. The IPO is expected to hit the market before the end of 2015.
Kotak Investment Banking, Barclays, Citi and ICICI Securities are handling the IPO.
L&T Infotech derives about 65 per cent revenues from the US, another 20 per cent from Europe and the balance from rest of the world. It has presence all major vertical like other IT majors such as banking, financial, insurance and energy and has around 200 clients. Post listing, analyst say, it could compete with mid sized IT firms such as Mindtree.
During 2014-15, total revenue stood at Rs 5,069 crore with a net profit of Rs 769 crore and operating margin of 20 per cent, according to the prospect document filed by the company.
