Diversified firm Larsen & Toubro Ltd said on Wednesday that its technology services arm L&T Infotech Ltd would open its initial public offering (IPO) on July 11. It would become the third group firm to go public.
While parent L&T has been a public firm for decades, the group's financial services arm L&T Finance Holdings Ltd floated its IPO five years ago.
L&T Infotech, the sixth-largest Indian IT firm by export revenues that reported Rs 4,968 crore revenues and Rs 510 crore net profit for the financial year ended March 31, 2015, had received the green signal from capital markets regulator Securities and Exchange Board of India (SEBI) last month after refiling its documents.
Earlier in April, L&T Infotech had refiled its draft red herring prospects (DRHP) a day after L&T said the unit had decided to withdraw it due to a change in the offer structure and “other considerationsâ€.
L&T Infotech had first filed its DRHP with the capital markets regulator in September. SEBI cleared the IPO proposal in January.
The issue comprises an offer for sale of 17.5 million shares; the DRHP filed in September mentioned the same number of shares.
For IPOs, 2015 was a big year with 21 companies hitting the market and two of every three firms beating the 30-stock benchmark Sensex.
But benchmark indices had lost a fifth of their value due to a sharp retreat in the secondary market at the beginning of 2016. This had not just wiped out all gains in benchmark indices since the BJP-led government took charge in May 2014 but has also shaken the nerves of companies planning to tap into the primary market.
But a bounce back over the last months and successful public issues of a handful of companies had given confidence to firms and merchant bankers to carry forward IPO plans.
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