Larsen and Toubro Ltd. will sell up to 10.2 percent stake in its wholly-owned subsidiary L&T Technology Services Ltd. through an initial public offering.
The engineering, research and development services arm of L&T will offer 10,400,000 equity shares of face value Rs 2. The price band and date of the IPO have not been disclosed.
The company has reserved up to 50 percent of the share for qualified institutional buyers (QIB), up to 15 percent for high networth individuals (HNIs) and around 35 percent for retail Investors.
The shares will be listed on the National Stock Exchange and the Bombay Stock Exchange. L&T has appointed Kotak Mahindra Capital, Bank of America Merrill-Lynch, JM Financial Institutional Securities and SBI Capital Markets as lead managers for the IPO.
L&T Technology Services has a networth of approximately Rs 1,092 crore. Its total revenue has risen at a compounded annual growth rate of 17 percent to Rs 3,067 crore in FY16. In the same period, its net profit rose at a CAGR of 34 percent to Rs 417 crore.
The company provides research and development solutions to other manufacturing, technology and process engineering companies and assistS them in developing and building products, processes and infrastructure.
The company was extracted out of L&T's subsidiary L&T Infotech in 2014 as a part of the parent company's business restructuring. Prior to that, it operated as a sub-division under the name Integrated Engineering Services (IES).
L&T Infotech concluded its Rs 1,243 crore IPO on July 11, which was subscribed more than eleven times.
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