L&T Infotech gets Sebi nod for IPO

L&T Infotech, an arm of engineering giant Larsen and Toubro (L&T), has received capital markets regulator Sebi's approval for its proposed initial public offering (IPO).

The company had filed its draft red herring prospectus (DRHP) with Securities and Exchange Board of India (Sebi) in April.

The regulator issued its final 'observations' on the draft offer documents on May 20, which is necessary for any company to launch a public offer.

The company's IPO comprises an offer-for-sale of up to 17,500,000 equity shares of the subsidiary by L&T Ltd.

The issue is being managed by Kotak Mahindra Capital Company, Citigroup Global Markets India and ICICI Securities.

L&T Infotech, the IT services unit of L&T, figures among India's top 10 IT service providers.

L&T Infotech filed fresh draft papers with Sebi on April 12, after it withdrew its earlier prospectus "due to change in the offer structure and other considerations".

Earlier, the firm had filed the draft papers with Sebi in September 2015, seeking permission for an IPO and had obtained a go-ahead in December last year.