L&T Infotech, the subsidiary of Larsen & Toubro will hit the stock market on Monday to raise Rs 1,200 crore through an initial public offer, said chairman of Larsen & Toubro, AM Naik.
L&T Infotech has registered revenue of $887 million for 2016, and the company’s current profit stands at Rs 922.3 crore. L&T Infotech profit grew by 15.1% in the current financial year, compared to last year, added officials, in a press meet today. L&T Infotech has now emerged a $17 billion firm.
The company is aiming a growth of $1.5 billion in coming years and another $400 million through acquisitions, said officials.
L&T Infotech plans to double its size in next three years by focusing on acquisitions and organic growth, added AM Naik.
“ Our focus for the coming years will be on expanding into niche services, acquisitions and building a solid structure for the company, rather than investing on start-ups, which will take many years to flourish in today’s competitive market,” added officials while addressing the media. L&T Infotech aims to focus on high-end technology and niche products, and does not opt for competing with majors in the industry, added AM Naik.
Infotech will be focusing on building portfolio now, said AM Naik, adding that it has no plans to compete with IT majors like TCS.
“TCS began its operations 30 years back, and our other competitors are also at least 10-15 ahead of us,” said the company officials.
However, experts are of the view that, had L&T succeeded in acquiring the scam tainted Satyam Computer Services in 2009, it would have emerged a major IT company in India by now.
L&T officials said, the IT industry is all about specialization and not about size. “We have chalked out plans to make L&T Infotech doublets size in next three years with a mix of organic and inorganic growth. We think we will be able to grow $1.5 billion organically and about $400 million will come through acquisitions,” Naik said.