Another L&T group subsidiary to hit the market

L&T Technology will file its draft red herring prospectus with market regulator Sebi tomorrow

After success of L&T Infotech intial public offering (IPO), another subsidiary of the Larsen & Toubro group is all set to hit the market. L&T Technology Services is filing its draft red herring prospectus with market regulator Securities and Exchange Board of India (Sebi) on July 15.

The company has appointed SBI caps, JM Financial, Kotak Mahindra, Bank of America and Merrill Lynch to manage the IPO. It plans to raise Rs 900 crore through share sale, said a source in the know.

Recently, L&T Infotech, subsidiary of engineering services giant had come up with its IPO opened on July 11 with the price band of Rs 705-710.

According to sources, L&T Technology Services’ revenues stood at $470 million for FY16 and the company is targeting $525 million in FY17. 

Out of $500 million revenues, $85 million was sitting in L&T Infotech, which was bought over by L&T Technology Services at a fair value in 2014.

Earlier this year, the company strengthened its management team by making Keshab Panda as CEO and managing director and inducted Kumar Prabhas, chief operating officer, to the board as executive director. Panda, who joined L&T in 2009 from Tech Mahindra (formerly Mahindra Satyam), as head of Americas, was until recently heading L&T Technology as chief executive.

Apart from this, the company has expanded its board of directors by inducting former L&T Infotech CEO Sudip Banerjee as an independent director. L&T Technology Services owes its origin to parent L&T, which in 2010 transferred its integrated engineering services business to the former.

This was followed by the transfer of the telecom and high-tech product engineering services business from L&T Infotech to L&T Technology Services in January 2014.