L&T to sell 15% stake in Technology Services via IPO

The offer would comprise an offer for sale of up to 1.04 crore equity shares of face value of Rs 2 each by L&T

Close on the heels of the successful Rs 1,243-crore L&T Infotech IPO, diversified group L&T's technology services unit has filed draft prospectus with Sebi for a public offer to raise an estimated Rs 1,000 crore.

Larsen & Toubro would sell up to 15 per cent stake in L&T Technology Services through the proposed IPO.

The offer would comprise an offer for sale of up to 1.04 crore equity shares of face value of Rs 2 each by L&T. According to sources, the share sale at a premium, to be decided later, could amount to around Rs 1,000 crore. In a filing to BSE on Friday L&T said: “The Board of Directors of the company has decided to participate in the offer for sale of equity shares by way of initial public offering by L&T Technology Services Limited.” L&T proposes to sell up to 15 per cent of equity shares held in the company through IPO, it added, but did not give any further details on pricing and size of the issue.

L&T Technology Services, which provides innovative engineering as well as research and development services across sectors, has revenues worth nearly USD 500 million.

It also offers engineering analytics, Internet of Things and automation solutions.

Besides parent Larsen & Toubro, L&T Finance Holdings is also listed while L&T Infotech's IPO closed with nearly 12 times oversubscription on Wednesday.

The erstwhile L&T Integrated Engineering Services, carved out of parent L&T in 2010, was renamed as L&T Technology Services in 2012.

Later, certain businesses of L&T Infotech, including telecom and high-tech product engineering services businesses, were transferred to L&T Technology Services.