L&T said to pick banks for engineering-services unit share sale

Mumbai: Larsen & Toubro Ltd., India’s biggest builder of roads and power plants, has picked advisers to prepare an initial public offering of about Rs1,000 crore ($150 million) for its subsidiary L&T Technology Services Ltd., people with knowledge of the matter said.

The Mumbai-based conglomerate is working with Kotak Mahindra Bank Ltd., Bank of America Corp. and JM Financial Ltd. on the engineering-services unit’s listing, according to the people, who asked not to be identified because the information is private. An IPO filing with India’s capital markets regulator could come as early as July, they said.

Larsen is preparing two separate listings as it seeks to monetize some of its operations, which span finance, ship building and nuclear power. The company also plans to list its software-services unit, Larsen & Toubro Infotech Ltd., as soon as next month after assessing demand and receiving relevant approvals, the people said.

Both offerings are expected to be completed by March next year, they said. Larsen chairman A.M. Naik told reporters on 26 May that the company would decide in a week on the timing of the software division’s listing.

Larsen declined to comment in an e-mailed response.

L&T Technology Services, with more than 10,000 employees, advises makers and distributors of medical devices, phone equipment, automobiles and aircraft, its website said. Larsen serves customers in more than 30 countries in industries including hydrocarbon, infrastructure and defense, according to its website.

Larsen & Toubro Limited