Mumbai, June 29: L&T Infotech will hit the capital market with its initial public offer (IPO) on July 11. The price band for the offer has been fixed at Rs 705-710 per share.
L&T Infotech, a subsidiary of Larsen & Toubro, is the country's sixth-largest IT services company in terms of export revenues.
The issue comprises an offer for sale of 1.75 crore shares (10.8 per cent in L&T Infotech). At the higher end of the price band, the issue will mobilise around Rs 1,243 crore.
L&T said retail investors would get a discount of Rs 10 per share on the price fixed. The offer will close on July 13.
In September last year, L&T Infotech had filed draft papers with the market regulator Sebi for the offer.
However, in April this year, L&T announced that the draft prospectus would be withdrawn as it wanted to provide the most recent financial information to investors. The company subsequently re-filed the document with the watchdog.
L&T Infotech offers IT services in industries, including banking and financial services, insurance, energy and process, consumer packaged goods, retail and pharmaceuticals and media and entertainment.
According to the company, one of its key strengths is its strong client relationships. In the previous fiscal, it had 17 clients who generated an over $10-million revenue and 10 clients who contributed over $20 million to the company's topline.
L&T Infotech, like its peers, derives a large share of its revenue from North America and Europe.
In 2014-15, while North America contributed nearly 69 per cent to the company's revenue from continuing operations, Europe's contribution stood at 17.9 per cent. In 2015-16, the company's 69 per cent revenue from continuing operations came from North America. During the same period, Europe generated 17.4 per cent revenue.
The company is planning to expand its geographical reach in other markets such as Australia, Singapore, Japan, South Africa, India and West Asia.
In 2015-16, revenue from operations and other income on a consolidated basis stood at Rs 6,143.02 crore compared with Rs 5,069.54 crore in the previous fiscal, an increase of 21.2 per cent.
The profit after tax in 2015-16 stood at Rs 922.17 crore against Rs 768.52 crore a year ago.
