Date:30/05/2006 URL: http://www.thehindu.com/2006/05/30/stories/2006053009611700.htm

Business

L&T Infotech plans stock exchange listing

Special Correspondent

New development centre at Whitefield inaugurated

BANGALORE: Larsen and Toubro (L&T) plans to list its software development subsidiary L&T Infotech on the stock exchanges through an initial public offering (IPO) in 2008, A. M. Naik, Chairman and Managing Director of L&T, said here on Monday.

"We are planning to launch an IPO some time in 2008. It will not be for the purpose of raising money, but to make L&T Infotech more answerable to customers and to unlock shareholder value. The IPO will also give us an idea of the value of the L&T Group,'' Mr. Naik told reporters after inaugurating a new software development centre at Whitefield near here. He, however, said a decision on off-loading stake was yet to be taken.

Mr. Naik said L&T Infotech would set up similar campuses in Mumbai, Pune and Hyderabad, entailing an investment of Rs. 600 crore, besides augmenting its existing facilities in Mysore and Chennai.

The revenues of L&T Infotech were expected to touch $250 million this fiscal, up from $182 million it earned last year. By 2010, the company was estimated to reach $1 billion in revenues by securing additional outsourcing deals, he said.

L&T Infotech planned to add 1,500 to 2,000 employees to its staff strength of 7,000 by the end of the current fiscal. Next year, another 2,000 persons would be added, Mr. Naik said.

The 2,000-seat software development centre (extendable to 3,000 seats), spread across 12.04 acres, was developed by L&T with an investment of over Rs. 100 crore.