Global IT solutions & services company L&T Infotech, a subsidiary of Larsen & Toubro (L&T), said Monday it had withdrawn the draft prospectus for its Initial Public Offering (IPO) to raise Rs. 2,000 crore. L&T, in a regulatory filing with the BSE, cited "changes in the offer structure and other considerations" as the reason behind the withdrawal.
L&T Infotech had initially planned to sell 17 million shares (10.58 percent) of its share capital, and had filed its draft prospectus Sept. 28, 2015, with the Securities and Exchange Board of India (SEBI), the Financial Express reports.
According to reports, the company had received the market regulator's nod to issue its IPO in December 2015.
"One of the reasons for withdrawing the DRHP (draft red herring prospectus) was that market conditions were not right for the issue. It is possible that we may file a fresh DRHP at some future date, but we cannot offer a specific comment on the matter at this stage," an L&T spokesperson was quoted as saying by Mint.
If there is any major change in the offer structure of an IPO, the company or the issue would be required to withdraw its draft prospectus and file a fresh DRHP with the market regulator for approval, as per a schedule of SEBI regulations.
Some companies, such as Citigroup Global Markets India Pvt Ltd, Kotak Mahindra Capital Co Ltd, ICICI Securities Ltd and Barclays Bank Plc, were reportedly financial advisors to the IPO sale.
The Larsen & Toubro Ltd stock was trading at Rs. 1,214.75 at around 11:18 a.m. Tuesday, up 0.16 percent from its previous close.
[1 lakh = 100,000 | 1 crore = 10 million | 100 crore = 1 billion]