L&T shares hit 8-month high; to double revenue in 3-4 years
Updated: Jul 05, 2016, 08:22 IST
MUMBAI: Shares of Larsen & Toubro (L&T) on Monday surged to an eight-month high on the Bombay Stock Exchange as the country’ s largest engineering conglomerate spelt out benefits of a proposed listing of its technology unit.
L& T shares hit a high of ₹1,575 on the BSE, a level last seen on October 21,2015, before closing at ₹1,565.20, up 1.6%.
“We will be doubling the revenues in the next 3-4 years. Everything will double. Profit might be slightly more,” L&T Group’s executive chairman AM Naik said at a road show ahead of its initial public offering (IPO).
Naik said the over ₹1,200 crore to be raised through the offering.
The Mumbai-based L&T, which has proposed an offer for sale of 10.8% of the equity of L&T Infotech on July 11, said proceeds from the much delayed listing would be used for working capital, or acquisitions in the technology space.
“New age consulting companies, new age infrastructure management services companies, analytics, on top of IoT (Internet of things) etc are the areas that are of interest for us,” said Sanjay Jalona, CEO and MD of L&T Infotech.
For acquisitions, the company will focus on the North American and European markets, which contribute a bulk of its revenues at present, Jalona added.
L&T Infotech IPO consists of a public issue of 17.5 million shares to be sold in the price band of ₹705-710, which would constitute 10.30% of the post issue paid up equity share capital of the firm.