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Monday, May 01, 2006

L&T Infotech plans IPO in 2008

L&T Infotech, the wholly owned IT subsidiary of the USD 4-billion L&T, plans to go public with an initial public offering in 2008, by when the mid-tier firm would have added 6,000 people to its strength, reports DNA.

“Though we do not have to raise funds from the market, we intend to go public in the next two years to unlock the value of our Infotech subsidiary,” L&T chairman and managing director A M Naik said.

He said the public listing would help the infotech arm to be a mid-sized software and services firm that has adopts corporate governance and offer value to shareholders.

Naik, however, declined to spell out details, including the dilution of the parent company’s stake and the amount to be raised from listing.

L&T Infotech is planning to consolidate its operations with an investment of Rs 600 crore (Rs 6 billion) to set up three software development centres and expand its headcount to about 9,000 people in the next 18 months. L&T Infotech currently employs 3,000 professionals and plans to locate new campuses in Faridabad, Chennai and Bangalore, besides Mumbai.

“Unlike other stand-alone or captive IT majors for software services and applications, we are positioning Infotech as a provider of end-to-end solutions to domestic and overseas customers,” Naik said.

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