L&T Infotech -- the IT services arm of domestic engineering conglomerate Larsen & Toubro -- has got the market regulator's nod to issue an initial public offer (IPO) worth Rs 2,000 crore.
The company will issue 1,75,00,000 equity shares with face value of Re 1 each. It had fled a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) on 28 September.
The funds raised through IPO will be used to improve its growth in the coming years, a company official had told PTI last month.
L&T chairman AM Naik had said in June last year that India's biggest engineering and construction company will sell 10% stake in IT services unit as part of its plans to monetise non-core businesses.
L&T Infotech will be the second unit of the parent company to go public, after L&T Finance Holdings Ltd -- the financial services arm -- was listed in 2011.
Naik had estimated the software division's profit to go up to Rs 900 crore in FY16 compared to Rs 762 crore of last fiscal year.
L&T Infotech currently has a headcount of more than 20,000 people; it has Chevron Corp., Hitachi Ltd and Lafarge SA as its top clients.
In 2009, the parent company had made an unsuccessful bid to take over Satyam Computer Services, which was hit by India's biggest corporate fraud at that time.
