L&T Infotech, subsidiary of engineering and construction major Larsen & Toubro (L&T, is set to hit the capital market with an initial public offering (IPO) on July 11.
The IPO comprises an offer-for-sale of up to 17.5 million equity shares by L&T.
The company in an exchange filing said it had fixed a price band of Rs 705 to 710 a share and will look to mop up about Rs 1,200 crore from the share sale.
The issue, which closes July 13, is an offer for sale by parent firm L&T. Individual investors will get a discount of Rs 10 on the issue price. Investment bankers Citigroup Global Markets India, Kotak Mahindra Capital and ICICI Securities will manage the share sale. L&T will look to divest about 10.30 per cent of its stake through the sale. L&T Infotech had filed its draft prospectus in September 2015 and refiled it in April this year after modifying its issue size. L&T Infotech’s total revenue (including other income) for FY16 was Rs 6,143 crore (Rs 5,069 crore in FY15). The net profit after tax as restated for FY16 was Rs 922 crore (Rs 769 crore in FY15).
L&T Infotech derives about 65 per cent of its revenues from the US and 20 per cent from the Europe. It has presence in all major segments and has around 200 clients.
Shares of L&T rose marginally to close at Rs 1,481.80 on BSE on Wednesday.