L&T Technology Services files draft prospectus

L&T Technology Services IPO

L&T Technology Services has filed draft red herring prospectus (DRHP) with SEBI to tap the IPO market. The upcoming IPO of L&T Technology Services – a fully owned subsidiary of construction and infrastructure conglomerate Larsen & Toubro (L&T) – will be completely an offer for sale (OFS) by its parent. The IPO will be managed by Kotak Mahindra Bank, Bank of America Merrill Lynch, JM Financial, and SBI Capital Markets.

Through L&T Technology Services IPO, L&T plans to sell 10,400,000 shares, roughly translating to 10.2% equity shares of its engineering R&D arm. As a result, L&T Technology Services will not be getting any funds from the IPO.

Till January 2014, L&T Technology Services was structured within the parent L&T under the integrated engineering services business and partly as a segment under the other subsidiary, L&T Infotech which has recently concluded its IPO successfully. Following an internal restructuring, L&T transferred its product engineering services and integrated engineering businesses to form L&T Technology Services.

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Keshab Panda CEO L&T Technology Services
Keshab Panda, CEO, L&T Technology Services

Headed by Dr. Keshab Panda, L&T Technology Services employs 10,000 highly skilled professionals with operations at 35 locations, including 12 global delivery centers, around the globe. L&T Technology Services earned revenue of INR31.42 billion (INR3,142.7 crore) and posted a profit after tax (PAT) of INR4.16 billion (INR416.6 crore) in FY2016.

L&T Technology Services IPO to unlock value

L&T Technology Services IPO is part of L&T’s strategy to unlock value by listing or selling some of the businesses. The engineering major also plans to list L&T Transmission & Distribution and L&T Hyrdrocarbons in the coming years. In earlier interviews, L&T Chairman AM Naik had indicated to list L&T Technology Services by July 2016, followed by L&T Transmission & Distribution and L&T Hyrdrocarbons in the next two years.

Read Also: L&T Technology bracing for IPO within a year

After heading the engineering conglomerate for more than a decade, Naik plans to retire in 2017.

L&T Technology Services files draft prospectus
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Anurag Gupta

With a profound experience in the finance field, Anurag also has years of experience in writing about different domains including finance and technology. He used to write for different content portals along with his association with IPO Central as a frequent contributor. His financial analyst’s background supports his writing and help him to get aware about different news’ of finance world.

2 thoughts on “L&T Technology Services files draft prospectus

  • July 15, 2016 at 7:14 PM
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    oh this is interesting! i think these L&T listings, if priced reasonably, will offer the small investor a taste of the good old days when IPOs meant great bluechip listings. Lets see how L&T infotech lists.

    Reply
    • July 18, 2016 at 1:03 PM
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      I dont see much gains on listing as results of Infosys has left bad taste. but for long term I still feel its a good company to hold on to.

      Reply

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