Following the initial public offering (IPO) of L&T Infotech, the engineering major plans to bring another group company L&T Technology Services for stock market listing. Preparations in this regard are already underway and an eventual listing for Larsen & Toubro’s industrial product solutions arm is possible within a year, said CNBC TV18 in a report.
The company is believed to be on track to hit annual revenue target of USD1 billion before hitting the street with the maiden issue. The next wave of growth will come from newer areas such as manufacturing and defense.
For the last five years, our CAGR is 33%, we are aiming to maintain that CAGR for the next five years
– Keshab Panda, CEO, L&T Technology Services
In earlier interviews, L&T Chairman AM Naik has maintained that he plans to list some of the group’s companies in coming years. “L&T Technology Services will get listed by July 2016, we are looking to list L&T Transmission & Distribution business by 2017 and we expect to list L&T Hyrdrocarbons business by 2018,” said the outgoing executive in an earlier interview. Naik plans to retire in 2017 from the company where he has spent more than 50 years.
The move is part of the group’s value unlocking exercise as L&T and L&T Finance Holdings are the only two group firms listed on the bourses. The latter is a fairly recent addition as it brought its IPO in 2011. Meanwhile, the group seems to be moving fast on its plans to list the infotech subsidiary. Earlier expected in mid-2016, the IPO is now likely to hit the markets in December this year.
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