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L&T Infotech, which is planning to raise more than ₹1,233 crore through an Initial Public Offering (IPO), is on the lookout for strategic acquisitions in Europe and is also planning to expand geographical presence across various global markets.
The company, a subsidiary of Indian engineering and construction giant L&T, is currently contemplating strategic acquisitions in “Germany, France and the Nordic region”, the company said in the initial IPO papers.
It, however, did not state the investments it would make for the acquisitions. L&T Infotech intends to continue expanding presence in the US and Europe, and also plans to expand geographical reach in other markets such as Australia, Singapore, Japan, South Africa, India and West Asia.
These are the markets the company has identified as having “potential” for growth, while it is in the process of augmenting teams in these markets to further explore the opportunities, it said. “The management intends to allocate resources to these markets not only for pure-play market opportunities therein, but also as stepping-stones to other,” the initial IPO papers added.
L&T Infotech has filed a draft red herring prospectus for an IPO, with the Offer For Sale opening on July 11and closing on July 13. The company, which has placed 1.75 crore equity shares on the block, has fixed a price band of ₹705-710 per share, parent company L&T had said in an exchange filing on Wednesday.
The company will offer ₹10 discount to retail investors. The IPO, entirely an offer-for-sale by the parent L&T, will rake in more than ₹1,233 crore at the lower end of the price band.
Citigroup Global Markets, Kotak Mahindra Capital and ICICI Securities are the bankers to the issue.
The red herring prospectus filed by L&T Infotech with the Registrar of Companies, Maharashtra, was approved on June 28.
In financial years 2016 and 2015, L&T Infotech’s revenues from North America stood at 69 per cent and 68.6 per cent of its revenue from continuing operations. During these years, revenues from Europe was 17.4 per cent and 17.9 per cent, respectively, of its revenue from continuing operations, it added.
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