L&T Infotech gets Sebi clearance for Rs 2,000-cr IPO

L&T Infotech, IT services unit of engineering & construction major Larsen & Toubro, figures among India's top 10 IT service providers

L&T Infotech, a subsidiary of engineering giant Larsen & Toubro, has received the Securities and Exchange Board of India’s (Sebi’s) approval to float an initial public offer of equity 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 firm, which had filed a draft red herring prospectus (DRHP), with Sebi on September 28 seeking permission for an IPO (initial public offer), obtained clearance from capital markets regulator on December 31.

L&T Infotech, IT services unit of engineering & construction major Larsen & Toubro, figures among India's top-10 information technology (IT) service providers.

Last month, a company official had said that L&T Infotech is looking to raise over Rs 2,000 crore through IPO and the public issue is expected to hit the capital markets in the last quarter of 2015-16.

The proceeds will be used to fund its future growth plans, the official had said. The IT firm, which clocked a revenue of Rs 5,070 crore in 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 per cent and 17.9 per cent, 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.

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.