The initial pubic offering of L&T Technology Services, an arm of engineering giant Larsen and Toubro (L&T), will hit the capital markets on September 12 to raise an estimated Rs 900 crore.
This will be the second company from L&T Group to hit the market with an IPO since July, when L&T Infotech had launched a public offer. The flagship Larsen and Toubro is already listed.
"The offer (of L&T Technology Services) will be open for subscription to public on September 12 and shall close on September 15," parent L&T said in a stock exchange notice.
The public issue comprises an Offer for Sale of up to 10,400,000 equity shares by its promoter L&T.
According to sources, the IPO size is estimated to be Rs 900 crore and would give L&T Technology Services a valuation of about Rs 8,700 crore. The IPO would account for about 10.2 per cent of the company's post-offer paid up capital.
The price band for the offer is expected to be Rs 850-860 per share.
The company, which had filed draft red herring prospectus (DRHP) with Sebi in July, got green signal from the markets regulator on August 24.
The firm, which provides innovative engineering as well as research and development services across sectors, has revenues worth nearly USD 500 million.
L&T Technology Services also offers engineering analytics, Internet of Things and automation solutions.
The erstwhile L&T Integrated Engineering Services, carved out of parent L&T in 2010, was renamed as L&T Technology Services in 2012.
Later, certain businesses of L&T Infotech, including telecom and high-tech product engineering services businesses, were transferred to L&T Technology Services.
Kotak Mahindra Capital Company, DSP Merrill Lynch, JM Financial Institutional Securities and SBI Capital Markets are the merchant bankers to the issue.
The equity shares are proposed to be listed on BSE and NSE.
In July, the initial share sale of L&T Infotech was oversubscribed nearly 12 times with the number of applications crossing 1 million. It raised over Rs 1,200 crore.
(REOPEN DCM118)
The company operates in five industry segments -- transportation, industrial products, telecom and hi-tech, process industry and medical devices.
In the last fiscal, little over 50 per cent of its total revenues came from industrial products, process industry and medical devices segments.
It had more than 8,000 engineers as on June 30, 2016.
