Larson and Toubro to delay Infotech listingJune 12th, 2008 - 10:53 pm ICT by IANS
New Delhi, June 12 (IANS) Construction major Larson and Toubro (L&T) announced Thursday that it will defer the listing of its software unit L&T Infotech to the second half of the next fiscal. “In the current market situation we are not planning any IPO (initial public offering). It is better to delay than have a bad opening,” L&T chairman A.M. Naik said.
L&T Infotech was planning to have its IPO in the second half of the current fiscal.
“Also, the Infotech division has not reached a revenue threshold of $500 million, which we have set as necessary benchmark for going to IPO,” Naik told reporters here before releasing a postal stamp commemorating the birth centenary of Henning Holck-Larson, the founder partner of L&T.
However, Naik expressed optimism that the company would maintain a revenue growth of 25-30 percent in the current fiscal, despite selling its ready-mix concrete division to France’s Lafarge.
“The company is also planning to increase its revenues from outside India, from 16 percent to 25 percent,” he said.