L&T InfoTech ltd. is one of India’s global IT services and solutions companies. They are going to introduce their IPO in the market to be public. The firm offers an extensive range of IT services to their clients in different industries. The firm is ready to hit the market with its Initial Public Offering (IPO) on July 11th, 2016. The company aims to raise around Rs 2,000 crore by offering shares at Rs. 705 – Rs. 710 Per Equity Share. Retail investor will get a Rs 10 discount on the offer price of the share.
The company was incorporated at Mumbai on December 23, 1996 as L&T Information Technology Limited. L&T InfoTech limited is a subsidiary of Larsen & Toubro Ltd. They are ranked as 6th largest Indian IT services company in terms of export revenues by NASSCOM in 2014.The firm is also among 20 top IT service providers of the world. Their clients comprise some of the world’s largest and well-known organisations, including 41 of the Fortune Global 500 companies.
They offer an extensive range of IT services to their clients in diverse industries such as banking and financial services, insurance, energy and process, consumer packaged goods etc. They offers different services which include application development, maintenance and outsourcing, enterprise solutions, infrastructure management services, testing, digital solutions and platform-based solutions.
They serve their clients across the industries, leveraging their domain expertise, diverse technological capabilities, wide geographical reach, an efficient global delivery model, thought partnership and “new age” digital offerings.
Larsen & Toubro Limited, a leading Indian conglomerate in engineering, construction, manufacturing, finance and technology are the promoters of L&T InfoTech ltd. Their Promoter currently holds 161,250,000 Equity Shares, equivalent to 100% of the pre-Offer issued, subscribed and paid-up Equity Share capital of our Company, along with six individuals who hold an aggregate of 60 Equity Shares jointly as nominees of the Promoter.
Besides India, L&T InfoTech ltd provide services globally and the percentage of their revenue from continuing operations from North America, Europe, Asia Pacific and the rest of the world amounted to 68.6%, 17.9%, 2.4% and 6.9%, respectively . As of June 30, 2015, they had 22 Delivery Centres and 42 sales offices globally.
They believe that their principal competitive strengths are as follows:
- Strong domain focus enabling Business-to-IT Connect.
- Strong parentage and brand equity of their Promoter.
- Established long-term relationships with the clients.
- Extensive portfolio of IT services and solutions.
- Focus on emerging technologies.
- Track record of established processes and executing large, end-to-end, mission critical projects.
- Conducive work environment to attract and retain talent.
- Strong management culture.
Some of the technologies that they consider as “new age” include:
- Cloud Computing
- Big Data
- Enterprise Integration
- Business Process Digitalisation
- User Experience
- Cognitive Computing
The key elements of their business strategies are as follows:
- Focus on a targeted client portfolio.
- Targeting higher total contract values.
- Continue to focus on emerging technologies.
- Expanding their focus on infrastructure management service offerings.
- Expanding their geographical presence
- Strengthening their brand name in the Indian and global IT services market
- Focus on greater internal operational efficiency
The company has good profits of over 15% from the last couple of years. They have registered a strong revenue growth of 20% CAGR in last 5 years. Their EPS for FY 2015 is Rs57. 1 and based on that, the stock is valued at a P/E multiple of 12.43 compared to other in the sector like Tech Mahindra trading at 14.7 and Hexaware trading at 18 time.
You can find more details about L&T Infotech as a company here.
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