L&T Infotech dampened the hopes of investors who had participated overwhelmingly to its recent initial public offering IPO). The shares of Larsen & Toubro listed at a discount to the issue price of Rs. 710, as against recent issues of Quess Corp and Mahangar Gas that listed at a huge premium.
L&T Infotech shares listed at Rs. 666.60, a discount of 6.11 percent to the issue price, after fixing the price band as Rs. 705-710 per share. The company had come up with an IPO of 1.75 crore shares aggregating about Rs. 2,500 crore.
L&T Infotech earned a net profit of Rs. 769 crore on consolidated total income of Rs. 5,069 crore in 2014-15, according to its offer document.
Larsen & Toubro shares were trading at Rs. 1,563 apiece, down 0.53 percent.
Details of the L&T Infotech public issue:
The face value of the shares being offered is Re 1 each.
The company does not own the "L&T" trademark or logo. "We do not own the "L&T" trademark and logo. Our Trademark License Agreement may be terminated 38 under certain circumstances," said the draft prospectus of the company.
The company is in an industry whose size is about $145 billion in revenues (2014-15), according to industry body Nasscom.
In 2014, the body ranked L&T Infotech as the sixth largest Indian IT services company in terms of export revenues.
The company earned a net profit of Rs. 769 crore on consolidated total income of Rs. 5,069 crore in 2014-15.
The company had about 19,500 employees as of March 31, 2015.
The book running lead managers to the offer are Citigroup Global Markets India, Kotak Mahindra Capital Company, Barclays Bank PLC and ICICI Securities. The registrar to the issue is Sharepro Services (India).