L&T Infotech may finally get listed this year; L&T shares up nearly 2%

Shares of engineering & construction major Larsen & Toubro (L&T) rose over 2 percent in early trade Tuesday, extending its upward march for the seventh consecutive session on the bourses.

Action in the counter can be attributed mainly to a report in The Economic Times that said the company is finally readying up plans to list its IT subsidiary L&T Infotech this year after missing chance many times earlier due to poor market conditions.

The parent company is looking to raise between Rs 1,600 crore and Rs 1,800 crore by offloading 10-12 percent stake in the IT arm, thereby seeking a valuation of around $3 billion.

As per the filings with the Registrar of Companies, L&T Infotech reported a revenue of Rs 4,643 crore for the year ended March 2014, while the company fell short of $1 billion-mark in revenue term in the last financial year, the report said.

At 11.35 am, L&T stock rose 1.9 percent (Rs 32.50) to Rs 1,763.55 after touching a high of Rs 1,768. Over 1.10 lakh shares changed hands on the BSE so far.

The stock has gained over 4 percent in the last six trading sessions, as investors cheered the company’s burgeoning order book position.

In the current month itself, the company has already announced winning orders worth Rs 5,352 crore thus showcasing the rising investors’ interest in this capital goods firm.