Larsen & Toubro Infotech Ltd, an IT services subsidiary of diversified business conglomerate Larsen & Toubro Ltd (L&T), has filed its draft red herring prospectus with the Securities and Exchange Board of India (SEBI) to float an initial public offer (IPO).
This would mark the second L&T unit to go public after L&T Finance Holdings Ltd. The firm has been looking to spin off diverse business units into separate listed firm while focusing on its core construction and engineering business.
Here’s a snapshot the IPO
* Issue comprises an offer for sale by L&T. The firm is selling 17.5 million shares comprising 10.8 per cent stake in the firm.
* Bankers: Citigroup, Kotak Mahindra Capital, Barclays and ICICI Securities
* Incorporated in 1996, the firm was ranked by IT industry body NASSCOM last year as the
sixth-largest Indian IT services company in terms of export revenues. It claims 41 of the Fortune Global 500 companies as its clients and offers services in the field of application development, maintenance and outsourcing, enterprise solutions, infrastructure management services, testing, digital solutions and platform-based solutions.
* The company caters to sectors such as banking and financial services, insurance, energy and process, consumer packaged goods, retail and pharmaceuticals, media and entertainment, hi-tech and consumer electronics and automotive and aerospace.
* As of June 30, 2015, it had 22 delivery centres and 42 sales offices globally.
* Earlier, as part of a business restructuring exercise, all engineering services businesses of L&T were consolidated under a separate subsidiary, LTTSL. As part of this restructuring, on January 1, 2014, L&T Infotech sold and transferred the assets and liabilities of its business related to IT services and solutions to its clients in the telecommunication sector.
* The company had 19,479 employees as of March 31, 2015.
* Its revenue from continuing operations increased at a CAGR of 20.4 per cent from Rs 3,427.85 crore in FY13 to Rs 4,968 crore in the year ended March 31, 2015. In USD terms, its revenue from continuing operations increased at a CAGR of 13.4 per cent from $630 million to $809.9 million in the same period. Its net profit rose from Rs 510 crore to Rs 760 crore during the same period.
* Besides India, it provides services globally with North America, Europe, Asia Pacific and the rest of the world contributing 68.6 per cent, 17.9 per cent, 2.4 per cent and 6.9 per cent, respectively.