Sebi seeks clarification from L&T Infotech on IPO plans

The Securities and Exchange Board of India (Sebi) has sought clarification from the merchant banker of L&T Infotech, an arm of engineering giant Larsen and Toubro (L&T), regarding the company’s proposed initial public offering.

Without disclosing the details of the clarifications sought, Sebi has said that it is awaiting response from lead manager for the proposed public offer.

According to the latest weekly update on the processing status of draft offer documents, Sebi has said clarifications were awaited on the company's IPO as on May 13.

The next update would be uploaded on Sebi's (Securities and Exchange Board of India) website on May 22.

Sebi further said it might issue observations on draft offer documents within 30 days after receiving satisfactory reply from the lead merchant banker regarding the clarification or additional information sought.

The regulator had received last communication from the company on May 12.

L&T Infotech filed fresh draft papers with Sebi on April 12, after it withdrew its earlier prospectus "due to change in the Offer structure and other considerations".

The IPO comprises an offer for sale of up to 17,500,000 equity shares of the subsidiary by L&T Ltd.

The issue is being managed by Kotak Mahindra Capital Company and Citigroup Global Markets India and ICICI Securities.

L&T Infotech, the IT services unit of L&T, figures among India's top 10 IT service providers.

Earlier, the firm had filed the DRHP with Sebi in September 2015, seeking permission for an IPO, and had obtained a go-ahead in December 2015.