IPO to open on July 11 and close on July 13; Price band fixed from Rs. 705 to Rs. 710 per equity share; Discount of Rs. 10 to retail investors
L&T’s subsidiary L&T Infotech, the sixth largest Indian IT services company in terms of export revenues (NASSCOM report 2015) will launch an initial public offering (IPO) of 1.75 crore equity sharers of face value of Re. 1 each for cash at a price band from Rs. 705 to 710 per equity share. The Offer for Sale will open on July 11, 2016 and close on July 13, 2016. Retail individual investors will get a discount of Rs. 10 on the Price fixed. The BRLMs to the Offer are Citigroup Global Markets India, Kotak Mahindra Capital Company & ICICI Securities.
L&T Infotech was amongst the top 20 IT service providers globally in 2015 according to the Everest Group’s PEAK Matrix for IT service providers. Its clients comprise some of the world’s largest and well-known organizations, including 49 of the Fortune Global 500 companies. It caters to clients in Banking & Financial Services, Insurance Energy & Process, Media and Entertainment, Utilities Engineering and Construction, Consumer Packaged Goods, Retail & Pharmaceuticals, Travel and Hi-Tech Plant Equipment, Logistics, Automotive and Aerospace.
As per the release, the Company posted revenues of USD 88.72 crore in FY16 (up 9.5% in dollar terms) as per the Annual Report 2015-16. The Company works with 258 clients including 49 Fortune 500 companies. It has 44 sales offices and 22 delivery centers across the globe. Of the total revenue, 69% comes from North America. Earnings per Share from Continuing Operations (Diluted) stood at Rs. 56.13 in FY16 (vis-à-vis Rs. 45.10 in FY15 and Rs. 39.16 in FY14). On consolidated basis, revenue from operations and other income for the financial year under review were Rs. 6,143.02 crore as against Rs. 5,069.54 crore for the previous financial year registering an increase of 21.2%. The profit before tax was Rs. 1,147.27 crore and the profit after tax was Rs. 922.17 crore for FY16 as against Rs. 936.99 crore and Rs. 768.53 crore respectively for the previous financial year.
The investment highlights are: Strong domain focus enabling Business to IT Connect; Strong parentage and brand equity of our Promoter; Established long-term relationships with our clients; Extensive portfolio of IT services and solutions; Focus on emerging technologies; Track record of established processes and executing large, end-to-end, mission critical projects; Strong management culture; and Conducive work environment to attract and retain talent.
Total headcount grew to 20,072 in FY16. The Company has been expanding its facilities to keep pace with revenue growth. Emphasis has been on adding capacity in SEZ locations for the new & incremental business. The new units at Mindspace SEZAiroli, Hinjewadi-Pune and DLF SEZ Chennai were made operational during the year ended March 31, 2016. Total capacity at Indian centers stands at 21,585 Seats as on March 31, 2016, said the release.
