L&T Infotech's over Rs 1,200-cr IPO to kick off tomorrow

L&T Infotech will hit the capital markets tomorrow to raise up to Rs 1,243 crore through an initial share sale offer.

The IT firm, part of diversified Larsen & Toubro group, would be coming out with an IPO that can fetch up to Rs 1,243 crore.

The price band for the issue, which would be open for subscription from July 11 to 13, has been fixed at Rs 705-710.

L&T Infotech on Friday raised Rs 373 crore from anchor investors by selling shares at a price of Rs 710 apiece.

The IPO comprises an offer-for-sale of up to 1.75 crore equity shares by L&T Ltd. It constitutes 10.3% of the post offer paid-up equity share capital of the company.

At the upper end of the price band, the offer would be worth Rs 1,243.50 crore. The sale would rake in Rs 1,233.75 crore at Rs 705 per share.

Kotak Mahindra Capital Company, Citigroup Global Markets India and ICICI Securities would be managing the issue.

On Thursday, L&T Group Executive Chairman A M Naik said the immediate target for L&T Infotech is to double its revenue to $2 billion (nearly Rs 13,500 crore) in next three years.

In financial year 2015-16, L&T Infotech's revenue from operations and other income stood at Rs 6,143.02 crore while it clocked a profit after tax of Rs 922.17 crore during the same period.

L&T Infotech Ltd is the sixth largest Indian IT services player at present with a revenue of $887 million and an employee base of over 20,000 people.

Meanwhile, earlier this month, the Rs 400-crore initial public offer of staffing firm Quess Corp was oversubscribed by a staggering 145 times, emerging as the most oversubscribed IPO in the past 9 years.