New Delhi : Engineering and construction giant Larsen & Toubro (L&T) said it will list its IT & Technology business — Larsen & Toubro Infotech Ltd — a wholly owned subsidiary.
L&T Chairman AM Naik told CNBC in an interview that the company will list its IT services unit L&T Infotech by December by selling 10 % stake. “It looks like we will be coming up in the market in December if not November. We will divest about 10 %, we are not raising more funds in the company,” Naik said.
Naik on being asked by CNBC that would a USD 3 billion valuation seem realistic, said, “I will accept anything which is attractive enough for our shareholders of L&T.”
On financial details of L&T Infotech, Naik said, “Revenue is USD 810 million going upto USD 950 million this year. We had a profit of Rs 762 crore and we hope to be able to achieve Rs 900 crore. Profit is in rupees because now the exchange rate changes everyday. The margin is 20 percent. We are trying to improve operational excellence….”
He said the company is making heavy investments in new technology, digitalisation, sales and marketing and intends to build a strong team before equity sale.
“We need four months to build a strong team. We need to take about 30-40 people i.e. CEO, one level below with about 6-8 people and two levels below with another 30-35 people plus, we need to hire a digitalisation man. We also have to connect the whole of L&T, which will be brought into the digital way of being smart in every business,” he said.
Naik also said the company will look at listing other businesses, including its hydrocarbons and transmission and distribution units over the next few years.