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L&T Infotech gets SEBI’s nod for Rs 2,000 crore IPO

05 Jan 2016 Evaluate

L&T Infotech, a subsidiary of engineering giant Larsen & Toubro, has received approval from capital markets regulator Securities and Exchange Board of India (SEBI) to float an initial public offering (IPO) worth Rs 2,000 crore. The issue comprises an offer for sale of up to 1,75,00,000 equity shares of face value of Rs 1 each by Larsen & Toubro. The company will use the issue proceed to fund its future growth plans.

The issue is being managed by Citigroup Global Markets India, Kotak Mahindra Capital Company, Barclays Bank Plc and ICICI Securities. The equity shares offered through the issue are proposed to be listed on BSE and NSE.

L&T Infotech, IT services unit of engineering & construction major Larsen & Toubro, figures among India's top 10 IT service providers. The IT firm, which clocked revenue of Rs 5,070 crore in the financial year 2014-15, is looking for strategic acquisition opportunities in relation to its IMS business. The company's revenues, in 2014-15, from continuing operations from North America and Europe constituted 68.6 percent and 17.9 percent, respectively. It is currently looking to pursue strategic acquisitions in Germany and France to enhance capabilities and address gaps in language capability, industry & technical expertise and geographic coverage in these countries.

 

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