L&T Technology Services, an arm of engineering giant Larsen and Toubro (L&T), has received the approval of capital markets regulator Sebi to float an initial public offer.
The company, which had filed draft red herring prospectus (DRHP) with Sebi in July, got green signal from the markets regulator on August 24, as per the latest update.
The public issue comprises an Offer for Sale of up to 10,400,000 equity shares by its promoter L&T. According to sources, the IPO size of L&T Technology Services is estimated to be Rs 750-1,000 crore.
The company, which provides innovative engineering as well as research and development services across sectors, has revenues worth nearly $500 million.
L&T Technology Services also offers engineering analytics, Internet of Things and automation solutions.
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.
Kotak Mahindra Capital Company, DSP Merrill Lynch, JM Financial Institutional Securities and SBI Capital Markets are the merchant bankers to the issue. The equity shares are proposed to be listed on BSE and NSE.
In July, the initial share sale of L&T Infotech was oversubscribed nearly 12 times with the number of applications crossing 1 million. It raised over Rs 1,200 crore.