Aiming to become one of the largest technology services providers in the country, engineering major Larsen & Toubro (L&T) today said it plans to take both its tech subsidiaries public.
The company will start the process for listing the two firms -- L&T Technology Services and L&T Infotech -- from July 2016, group executive chairman A M Naik told reporters while announcing the results here.
"We are the number one firm in the engineering space. Though we are too young in the infotech business and smaller than competitors, we want to be one of the strongest brands in the country and outside," he said.
The company reported a growth of 14.26 per cent in consolidated net revenue for FY14 at Rs 85,128.4 crore from Rs 74,498 crore last fiscal. Of this, L&T Technology Services and Infotech together reported income of Rs 110 crore in FY'14.
"Considering our growth plans and the reach of our brand, we expect 18-20 per cent rise in the incomes of the two companies in the next two years. Therefore, by the time we list these two firms, their total revenues would have reached around Rs 150-160 crore, if we grow organically and don't acquire any other company. I think both are doing well and will do well in future as well," he said.
L&T Infotech provides IT services and solutions in various verticals including banking, insurance, energy and utilities, auto and aerospace. L&T Technology Services provides end-to-end services, including product design, analysis, prototyping and testing, embedded system design, manufacturing engineering, plant and construction engineering, asset information management and engineering process support.
Meanwhile, Naik added, the company is still considering listing its subsidiary L&T Infrastructure Development Projects (L&T IDPL) on the Singapore Exchange as well as certain road assets of the unit through a business trust in Singapore.
"We have been stating that the road projects are not assets we are building to hold onto for eternity. These are assets to be developed and transfered he ownership to somebody else.
"So it is a part of the churn. We will continue to look for the capital in selling assets developed and we will also look at capital at apex level," Group's chief financial officer R Shankar Raman explained.
Naik added, "Our plans of listing in Singapore trust continues. Dilution of 20-25 percent in IDPL will continue. This will enable us to take new projects selectively and L&T will