Mumbai: Larsen and Toubro Infotech Ltd, the information technology (IT) services unit of India’s largest engineering firm, will launch its initial public offering (IPO) on 11 July, the parent firm said in a filing to the stock exchanges on Wednesday.

The IPO will close on 13 July.

L&T Infotech has fixed a price band of 705-710 per share for the offering, the filing stated. At the upper end of the price band, the IPO size would be 1,242.50 crore. The company is offering a discount of 10 for retail investors.

The public offering is a pure offer for sale with the parent firm Larsen and Toubro Ltd looking to divest about 10.3% of its stake in the company.

L&T Infotech is structured around two businesses—the industrials and the services clusters. Industrials cluster caters to clients in sectors such as manufacturing, energy and utilities, hi-tech and consumer electronics, automotive and aerospace, engineering and construction.

The services cluster focuses on banking, financial services, insurance, travel and logistics, media and entertainment, and healthcare.

L&T Infotech had initially filed its draft red herring prospectus (DRHP) in September 2015. It refiled the DRHP in April.

“Since the DRHP was filed several months ago, and in the IT services industry business changes on a quarterly basis, when our firm does take the L&T Infotech IPO to the market, it should do so on the basis of the most recent financial results," an L&T spokesperson said 11 April.

The company has hired Citigroup Global Markets India Pvt. Ltd, Kotak Mahindra Capital Co. Ltd and ICICI Securities Ltd to manage the share sale.

L&T Infotech’s revenue rose 2.15% to 4,744 crore for the year ended 31 March 2015 from 4,644 crore in the previous year. Net profit fell 14% to 774 crore from 903 crore a year ago.

The IT services firm’s total headcount stood at 20,072 as of 2015-16 end.

L&T’s plan to list the IT services arm is part of the group’s plans to monetize its shareholding in several of its businesses.

In the company’s 2014-15 annual report, L&T group executive chairman A.M. Naik said that the company will monetize assets from time to time. He said that L&T intends to unlock the value of its IT and technology services business.

On 9 June,Bloomberg reported that L&T has picked advisers to prepare an IPO of about 1,000 crore for its subsidiary L&T Technology Services Ltd. 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, Bloomberg had reported.

So far this year, 11 firms have raised approximately 7,783.6 crore through the IPO route, according to data from primary market tracker Prime Database.

In 2015, 21 companies had raised 13,614 crore through initial share sales, data shows.

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