L&T eyes big money, to raise over $1 billion via asset sales: Sources

MUMBAI: L&T has embarked upon a massive monetisation exercise by putting many of its assets up for sale to unlock value. ET Now learns that L&T looks to raise over $1 billion via several asset sales. L&T’s fund raising process includes 10% stake sale in L&T Infotech and complete sale of L&T Vales and L&T Alloys, sources with direct knowledge said.

L&T Infotech has been in focus for its plan for a public offering in 2016, ahead of that L&T is scouting around for financial investors to buy 10% stake in its IT arm for around $300 mn. L&T is expecting a $3 bn valuation for L&T Infotech which is expected to reach $1 billion revenue mark in FY16.

L&T has put L&T Vales on the block and expects to rake in $800 mn via the sale process. Another smaller company L&T’s alloys business is also up for sale at a valuation of less than $50 mn. These two sales would be part of L&T’s strategy to sell its non-core businesses and raise funds to deploy in more profitable ventures.

L&T has already appointed investment banks for the 3 deals, larger chunk of the transactions are being handled by Citi, a source said. When contacted by ET NOW, L&T’s spokesperson said,"As a policy we do not comment on market speculation."