Joining the IPO rush, business conglomerate Larsen & Toubro (L&T) will sell up to 15 per cent stake in its IT services unit L&T Infotech through a public issue estimated at about Rs 2,500 crore.
In a meeting held today, L&T’s board of directors approved a proposal for an ‘offer for sale’ of equity shares for sale of up to 15 per cent stake in Larsen and Toubro Infotech.
While the company did not disclose any further details, sources said the IPO could be worth Rs 2,500 crore and the draft papers would be filed with the markets regulator Sebi by mid-August or the third week of the month.
The bankers for the offer may include Kotak, Citibank and Barclays.
After a long lull, the IPO market is seeing a fast revival and at least 24 draft proposals have been filed with Sebi so far in 2015. While nine IPOs have already hit the market this year, many others are currently in the pipeline, including operators of popular brands like IndiGo and Cafe Coffee Day.
“…the Board of Directors of the company at its meeting held on July 31, 2015, has decided to participate in the offer for sale of equity shares in the offer. The company proposes to sell up to 15 per cent of the equity shares held in
Larsen & Toubro Infotech Limited through the offer,” L&T said in a filing to the BSE.
L&T Chairman AM Naik had said earlier in June that the company plans to list L&T Infotech by December.
A wholly-owned subsidiary of company, L&T Infotech, with nine delivery centres, is expanding into new geographies even as it consolidates its client facing organisation in North America and Europe.
The clients of the unit include Chevron, Freescale, Hitachi, Sanyo and Lafarge, among others.
The company has been looking to exit non-core business for long.
L&T is an Indian multinational engaged in technology, engineering, construction, manufacturing and financial services with over USD 15 billion in revenue. It operates in over 30 countries worldwide.