L&T Technology Services issue price fixed at Rs850-860 per share

Engineering and construction major Larsen and Toubro Ltd (L&T) has informed the Bombay Stock Exchange that it has fixed a price band of Rs850-860 per share for the sale of a 10.2 per cent stake in L&T Technology Services.

The stake sale through an initial public offer is expected to raise around Rs900 crore, giving the company a valuation of around Rs.8,800 crore.

The issue will open on 12 September and close on 15 September, the company stated in a stock exchange filing.

This is the second IPO from L&T this year.

In July, its information technology arm L&T Infotech Ltd raised Rs1,243 crore through an IPO that saw subscription of 11.69 times. The issue was priced at the upper end of the price band of Rs705-710 per share.

L&T Technology Services, which was a division of L&T and a sub-segment business of L&T Infotech Ltd, was hived off as a separate engineering, research and development services company in January 2014, as part of a business restructuring and consolidation exercise.

L&T transferred product engineering services of L&T Infotech and its integrated engineering services to form L&T Technology Services.

The integrated engineering business as a part of L&T had reported revenues of Rs1,224.8 crore and Rs1,628.1 crore in fiscal years 2013 and 2014, respectively.

Further, in fiscal year 2013 and the nine months ended 31 December 2013, revenue from product engineering business as part of L&T Infotech was Rs420.3 crore and Rs374.4 crore, respectively, after certain adjustments.