Mumbai: Ahead of its subsidiary L&T Infotech’s initial public offering (IPO) announcement, shares of India’s largest engineering and construction company Larsen and Toubro Ltd (L&T) on Monday hit an eight-month high, gaining on the back of higher volumes for the six consecutive session. The shares of Larsen and Toubro on July 4 have closed 1.59 per cent higher. The shares, closed at Rs 1565.20 and has hit its 8 month high. The major reason the company shares are witnessing a positive movement is due to upcoming IPO of its subsidiary “L & T Infotech”.
The company in a press conference post market hours said that it plans to use the capital raised by the IPO for expansion purposes. The IPO will likely open on July 11 and close on July 13. On June 29, the company had informed the exchanges that it has fixed the price band between Rs 705 to 710.
The company has hired Citigroup Global Markets India Pvt Ltd., Kotak Mahindra Capital Co. Ltd., and ICICI Securities Ltd., to manage the IPO. L&T Info is operational in two businesses: namely the industrial and the services. The industrial segment caters to the clients operating in sectors such as manufacturing, energy and utilities, hi-tech and consumer electronics, automotive and aerospace, engineering and construction.
On the other hand, the services segment caters to the clients of banking, financial services, insurance, travel and logistics, media and entertainment and healthcare. The shares of the parent company L&T, the largest engineering and construction company are gaining on the upcoming IPO. The shares in the last 5 days have gained by 6 per cent. The shares in the last 6 months have given a return of more than 25 per cent. With a week's time left for the IPO, the shares of L&T will enjoy the IPO momentum and are expected to gain.