As part of its strategy to exit non-core areas, infrastructure major Larsen & Toubro (L&T) is looking at selling stakes in three units. The company expects to raise $1-1.5 billion from the sale.

L&T has mandated Citigroup to scout for buyers for certain assets, including L&T EWAC Alloys, and L&T Valves; it expects L&T Valves to fetch about $700 million.

L&T is also eyeing a partial stake sale in L&T Infotech.

Infotech arm

In L&T Infotech — the IT services and solutions arm — the construction and engineering conglomerate is looking to offload at least 10 per cent or make an initial public offering (IPO) by next year, according to multiple sources close to the development.

A couple of suitors have already evinced interest in the valves division. The talks with the potential buyers are in the initial stages, one of the sources said, declining to be identified.

L&T Valves, a wholly-owned subsidiary, with manufacturing facilities in Chennai, Coimbatore and Kancheepuram, makes flow-control solutions for oil & gas and power sectors. In 2013, L&T acquired a 50 per cent stake of the US-based Flowserve Corp in Audco India to strengthen its valves business.

The sources declined to be identified as the negotiations are private, while a Citigroup spokesperson declined to comment. When contacted an L&T spokesperson said: “As a policy we do not comment on market speculation.”

In March, L&T Group Executive Chairman AM Naik told BusinessLine in an interview that the company had identified certain small businesses that are less than ₹1,000 crore for divestment. He, however, did not give the names of the companies. On L&T Infotech, he said the company had plans for an IPO, but did not specify a timeline.

Welding subsidiary

L&T EWAC Alloys, another wholly-owned subsidiary, is into maintenance and repair welding and has a factory in Ankleshwar, Gujarat. Its products and services include consumables, specification grade electronics and flux-cored welding wires.

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