Global engineering and construction firm L&T's subsidiary L&T Technology Services on Friday fixed a price band for its Initial Public Offering (IPO) between Rs. 850-860 per share. The issue size is expected to be around Rs. 900 crore.
The IPO will open on Sept. 12 and close on Sept. 15. L&T's Technology Services is global a engineering, research and development services firm.
The parent company L&T informed both BSE and NSE that the red herring prospectus filed by L&T Technology Services (LTTS) in Mumbai was approved on Sept. 1 by the Registrar of Companies. Larsen & Toubro is making an offer for sale, which will reduce 10 percent shareholding in its subsidiary company and will receive Rs. 894.4 crore at Rs. 860 per share, Moneycontrol reported.
The LTTS equity shares will be listed on the BSE and NSE.
"Listing will enhance brand name and provide liquidity to the existing shareholders. Our company will not receive any proceeds from the offer," L&T's said in a statement.
According to reports, L&T Infotech, the software solution providing arm of the global conglomerate, raised more than Rs. 1,200 crore through its issue in July.
L&T Infotech shares listed at Rs. 666.60, a discount of 6.11 percent to the issue price, after fixing the price band as Rs. 705-710 per share. The company had come up with an IPO of 1.75 crore shares aggregating about Rs. 2,500 crore. The company dampened the hopes of investors who had participated overwhelmingly to its recent initial public offering.
