 "L&T Infotech (Photo: Wikipedia)")
Within a day of its decision to withdraw the listing plans of L&T Infotech, parent company Larsen & Toubro today refiled the draft red herring prospectus for its IT business with the Securities and Exchange Board of India.
According to reports, L&T was eyeing valuations of between Rs 16,000 crore and Rs 18,000 crore for L&T Infotech. Sources said that the company will mark down the valuations by up to 20%.
“L&T Infotech wasn’t getting the valuations it had earlier envisaged. The company approached Sebi seeking its permission to go ahead with the IPO with lower valuation. As the change in valuation was more than what Sebi normally permits. The company had to withdraw its offer document and re-file it,” said a banker with the knowledge of the development.
Re-filing means the company will have to undergo the entire IPO approval process once again. However, As L&T Infotech had already obtained Sebi nod for the IPO, the clearance process this time around may not take time, said the banker.
When contacted, the company spokesperson declined to comment on the issue.
In a filing to the exchanges, on April 11, the company had stated that they are withdrawing due to change in the offer structure and other considerations.
Based on the earlier DRHP filed, the engineering giant was planning to sell 17.5 million shares (about 10.8%) in L&T Infotech through the IPO. Kotak Investment Banking, Barclays, Citi and ICICI Securities are handling the IPO.
