Larsen & Toubro Ltd. plans to raise close to Rs 900 crore from the sale of 10.2 percent stake in L&T Technology Services through an initial public offering. The IPO will open for subscription on September 12, and close three days later on September 15.
Speaking to reporters at a press conference to launch the IPO, AM Naik, executive chairman of the L&T Group said he expects L&T Technology Services’ revenue to grow to $525 million – nearly Rs 3,500 crore at today’s conversion rate – in this financial year. That’s a 15 percent increase over the revenue recorded in FY16.
Naik also aims to double L&T Technology Services’ annual revenue over the next three to four years.
A sizable portion of this increase in revenue will be driven by acquisitions, according to Naik. The company could make acquisitions worth $150-200 million, he said, but added that there were no specific targets at the moment.
Naik refrained from drawing out a clear investment plan, but insisted that he saw L&T Technology Services as a high potential business that he hoped would be the first within the L&T Group to cross the $1-billion standalone annual revenue mark.
The proceeds of the initial public offer will go to L&T since it is an offer for sale and not a fresh issue of shares. The price band for the offer has been set at Rs 850-860 per share.
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