L&T Infotech gets Rs. 2000 crore IPO clearance from SEBI, to use proceeds for future growth

L&T Infotech, a subsidiary of engineering giant Larsen & Toubro, gets IPO clearance nod from markets regulator SEBI. The proceeds will be used to fund its future growth plans, a company official told PTI.

The issue comprises an offer for sale of up to 1,75,00,000 equity shares of face value of Rs 1 each by Larsen & Toubro.

L&T Infotech, IT services unit of engineering & construction major Larsen & Toubro, figures among India's top 10 IT service providers.

Last month, the company official had said that L&T Infotech is looking to raise over Rs 2,000 crore through the initial public offer (IPO) and the public issue is expected to hit the capital markets in the last quarter of 2015-16.

The IT firm, which clocked a revenue of Rs 5,070 crore in in the financial year 2014-15, is looking for strategic acquisition opportunities in relation to its IMS business.

The company's revenues, in 2014-15, from continuing operations from North America and Europe constituted 68.6 per cent and 17.9 per cent, respectively.

It is currently looking to pursue strategic acquisitions in Germany and France to enhance capabilities and address gaps in language capability, industry & technical expertise and geographic coverage in these countries.

The issue is being managed by Citigroup Global Markets India, Kotak Mahindra Capital Company, Barclays Bank Plc and ICICI Securities.

The equity shares offered through the issue are proposed to be listed on BSE and NSE.

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