Larsen and Toubro Infotech Ltd is a subsidiary of Larsen and Toubro Ltd. It has refiled intial shares sale papers with the capital markets regulator as on 12th April 2016 after cutting its issue size compared to its earlier filed draft. The firm aims to raise about Rs. 1300-1400 crore which is revised down from previous figures i.e. Rs. 1800-2000 crore.
As per the latest file record of L&T, the offer comprises sale of 17.5 million shares that L&T wish to sell.
According to Schedule 7 guidelines of regulator Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, a company must file a fresh document if the issue size increases or decreases by more than 20%, as per there are six other reasons that could require a firm to file a fresh document, including change in promoters and persons in control, change in the board composition and change in the main objects of the issue.
Therefore. the company decided to the change in the issue size and announced three investment bankers—Citigroup Global Markets India Pvt. Ltd, Kotak Mahindra Capital Co. Ltd and ICICI Securities Ltd. Barclays Bank Plc has withdrawn from the issue as it has shut its equity capital market division in India.
As on 11 April, L&T Infotech had sought an exemption from filing a new prospectus after reducing its issue size. However, it did not get an exemption from Sebi and the firm had to withdraw its DRHP. Moreover, investors wanted shares at a 10-15% lower from the four-digit price band the company was seeking, given the deceleration in growth that the sector has witnessed.
The revenue of the company surged 2.15% to Rs.4,744 crore for the year to March from Rs.4,644 crore a year ago. However, Net profit fell 14% to Rs.774 crore from Rs.903 crore a year ago.
L&T InfoTech, the IT services unit of L&T, figures among the India’s top 10 IT service providers.