L&T Infotech IPO opens for bidding on 11 July 2016

L&T selling 1.75 crore shares through the IPO

IT outsourcing services provider Larsen & Toubro Infotech known as L&T Infotech has announced an initial public offer (IPO). The company's promoter and engineering & construction major L&T is selling a part of its stake through the IPO of L&T Infotech. L&T Infotech will not get any funds from the IPO and the entire sale proceeds will go to parent L&T. L&T is selling 1.75 crore shares of L&T Infotech through the IPO. The price band for the IPO has been fixed at Rs 705-710 per share. The IPO opens for bidding on 11 July 2016 and closes on 13 July 2016.

L&T Infotech, part of the L&T group, offers an extensive range of IT services to clients in diverse industries such as banking and financial services, insurance, energy and process, consumer packaged goods, retail and pharmaceuticals, media and entertainment, hi-tech and consumer electronics and automotive and aerospace. New and emerging technologies accounted for 11.1% of the company's revenue from continuing operations in the year ended 31 March 2016 (FY 2016). L&T Infotech plans to invest seed capital in startups to gain from innovation capabilities and digital offerings of startups. L&T Infotech is dependent on North America and Europe regions for most of its business. The North America region contributed 69% of the company's revenue in FY 2016. The contribution from Europe to total revenue was 17.4% in FY 2016.

Based on consolidated financial performance, the company's net profit rose 19.89% to Rs Rs 922.17 crore on 17.45% growth in revenue from operations to Rs 5847.06 crore in the year ended 31 March 2016 over the year ended 31 March 2015. The company has no formal dividend distribution policy.

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