L&T Infotech plans to go shopping with IPO funds

L&T Infotech, the information technology arm of Larsen & Toubro, plans to use some of the funds raised through its initial public offer (IPO) of equity, opening July 11, to make acquisitions.

The price band has been fixed at Rs 705-710. L&T Infotech plans to raise Rs 1,240 crore through the IPO. The company said it was looking at acquisitions in Germany, France and the Nordic region. These regions, it claimed, were gateways to the Africa, eastern Europe and the Baltic region, and West Asia, respectively.

The company said it would continue expanding its presence in the United States and Europe. It plans to expand its reach to other markets such as Australia, Singapore, Japan, South Africa, and West Asia. It is in the process of expanding its teams in these to explore opportunities.

So far, L&T Infotech has acquired three firms — GDA Tech, a US-based electronic design company in 2007; the transfer agency business unit of Citigroup in Canada in 2011; and in 2015, Information Systems Research Centre.

According to the company’s latest annual report, L&T Infotech clocked revenue of $887 million (Rs 6,000 crore) last financial year — growth of 9.5 per cent. It has 258 clients.

“At the threshold of the coveted $1-billion milestone, our scale and agility makes us the ideal partner for global companies. We will continue to draw upon our rich technology and real-world experience to lead the convergence of physical and digital ecosystems. We will help our clients stay ahead of the technology curve by making early investments in exponential technologies,” said Sanjay Jalona, chief executive officer, L&T Infotech, in the FY16 annual report.

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