• Investment World
• eWorld
• Brand Line
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest
• The New Manager

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Cross Currency

• Rates
  
  

Shipping

• Ports
  
  

Archives

• Yesterday
• Datewise
• Resources

Group Sites

• The Hindu
• Business Line
• Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

Our Bureau

New campus in Bangalore; to hire 2,000 more

Bangalore , May 29

Larsen and Toubro Infotech, the software development arm of the $5-billion L&T group, plans to come out with an Initial Public Offering (IPO) in 2008.

Speaking at the inauguration of a campus in the city, Mr A.M. Naik, Chairman and Managing Director, L&T, said, "We are planning to go for an IPO sometime in 2008. It will not be for the purpose of raising money, but to make L&T Infotech more answerable to customers and to unlock shareholder value. The IPO will also give an idea of the value of L&T group."

In reply to a query, he said the decision on divesting stake had not been taken yet.

Announcing plans to set up various campuses across the country, at Mumbai, Pune and Hyderabad, Mr Naik said that funds for these investments were being generated internally. The company would also augment Chennai and Mysore campuses.

The company would foray into product engineering, especially on the embedded front. "We have selectively started moving from software to hardware, begun prototypes," said Mr Naik.

L&T Infotech's revenue would touch $250 million this fiscal, Mr Naik predicted.

The net profit margins would grow to 11 per cent this year, from 9 per cent last year, he added. By 2010, the revenue would reach $1 billion, by securing additional outsourcing orders. Last year, the company posted a revenue of $182 million.

The company plans to add 1,500-2,000 employees to its current staff strength of 7,000 by the end of the current year. Next year, another 2,000 would be added, Mr Naik said.

L&T Infotech currently employs 2000 product engineers in India.

More Stories on : IPOs | Software | Larsen & Toubro Ltd

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Subex to hike authorised capital

Copyright © 2006, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line