Taking cognisance of the below expectation share price of recently listed L&T I nfotech , L&T Group Chairman AM Naik today announced that their infotech arm would go for ‘repositioning’ by focusing more on new-age technologies such as big data and cloud computing.
Naik, who was here to interact with media about the upcoming IPO of L&T Technology Services, a wholly-owned subsidiary of engineering giant Larsen & Toubro, assured the investors of L&T Infotech that the company’s shares would start trading in premium within one year.
He also blamed major IT companies for “not providing good guidance” on the Sensex. “I must tell you that unfortunately many companies gave a not so very good guidance in the IT industry.
The entire IT Index has gone down, while the general Index (Sensex) went up because the guidance was not so encouraging from major IT companies, which had an impact on IT industry as a whole. And unfortunately, we caught in to it,” Naik told reporters. I
n a tepid debut two months back, L&T Infotech listed 6 percent below its listing price of Rs 710. It closed up 1 percent yesterday at Rs 652.10 on the BSE against a Sensex rally of over 1.6 percent.
“We are now focusing on building and repositioning this company to be a very premium, new technology oriented, such as big data and cloud computing. Within one year, you (investors) will have no regret,” said Naik.
Commenting about the share price of L&T Infotech, which is trading in discount, Naik said that the slump in IT Index happened only after their IPO was launched.
“IT industry is not in the best of its time now and this happened after we launched the IPO (in July). Otherwise, we may have not launched it, as we are concerned about our reputation.” “As we have taken this matter seriously, we are now repositioning our company towards new age technologies. I am confident that in one year, we will start trading in premium,” said Naik.
He also announced that the company has signed an agreement with another firm for introducing a new software platform. “We will be making an important announcement in couple of weeks time where we have signed (an agreement) with a major company on a new software platform which will focus only on manufacturing. We are positioned higher than the rest because we are a strong manufacturing company. This will going to make a difference,” said Naik.
“Whether it is geographical spread, or technological innovations or partnering for new-age products, I think we are firing all cylinders. Hopefully, it will bring results,” he added.