Post-IPO, L&T Infotech to expand presence in Europe

Mumbai, June 30: L&T Infotech — a subsidiary of Larsen and Toubro — will launch its initial public offering (IPO) on July 11. As per a stock exchange filing, the company will offer 1.75 crore shares for public subscription at a price band of R705- 710. At the upper price band, the company will raise R1,242.5 crore through the share sale.

The complete issue is an offer for sale as the parent company is looking to divest about 10.3% stake in the company. Kotak Investment Banking, Citi and ICICI Securities are the book running lead managers for the issue.

Post the IPO, the company plans to pursue strategic acquisitions in Germany, France and the Nordic region. “The company intends to continue expanding presence in the United States and Europe. It also plans to expand geographical reach in other markets that it has identified as having potential, including Australia, Singapore, Japan, South Africa, India and West Asia. It is in the process of augmenting teams in these markets to further explore the opportunities therein,” L&T Infotech said in an official statement on Thursday.

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

The revenue of L&T Infotech grew 21% to R6,143.02 crore in FY16 against R5,069.54 crore in FY15, DRHP data showed. The net profit of the company went up to R1,147.27 crore in FY16 from R768.53 crore in FY15. As of March 2016, the number of employees in the company stood at 20,072.

In geographical terms, majority of the company's revenue comes from North America. In FY16, 69% of the total revenue of L&T Infotech came from North America while 17.4% of its revenue came from Europe, DRHP data showed.