L&T was up 0.26% to Rs 1,553.25 at 12:01 IST on BSE after the company's subsidiary L&T Infotech received strong response from investors for its initial public offer which concluded yesterday, 13 July 2016.
Meanwhile, the S&P BSE Sensex was up 36.42 points or 0.13% at 27,851.60.
On BSE, so far 40,000 shares were traded in the counter as against average daily volume of 2.05 lakh shares in the past one quarter. The stock rose as much as 0.63% at the day's high of Rs 1,559 so far during the day. The stock lost as much as 0.38% at the day's low of Rs 1,543.20 so far during the day. The stock had hit a 52-week high of Rs 1,886.25 on 17 July 2015. The stock had hit a 52-week low of Rs 1,016.60 on 12 February 2016. The stock had outperformed the market over the past one month till 13 July 2016, advancing 5.75% compared with 5.37% rise in the Sensex. The scrip had also outperformed the market in past one quarter, surging 25.38% as against Sensex's 8.54% rise.
The large-cap company has equity capital of Rs 186.40 crore. Face value per share is Rs 2.
IT outsourcing services provider Larsen & Toubro Infotech's (L&T Infotech) initial public offer (IPO) received bids for 14.31 crore shares compared to 1.22 crore shares on offer. The IPO was subscribed 11.69 times. The IPO opened for bidding on 11 July 2016 and closed yesterday, 13 July 2016. The price band of the IPO was fixed at Rs 705-710 per share.
The qualified institutional buyers (QIBs) category in the IPO was subscribed 19.91 times. Non institutional investors category was subscribed 10.76 times and retail individual investors (RIIs) category was subscribed 7.39 times.
L&T Infotech's promoter and engineering & construction major L&T sold a part of its stake through the IPO. L&T Infotech will not get any funds from the IPO and the entire sale proceeds will go to parent L&T. L&T sold 1.75 crore shares of L&T Infotech through the IPO. Retail investors will get a discount of Rs 10 per share on the final price discovered through the book building route.
The company had raised Rs 372.75 crore from selling 52.5 lakh shares to a slew of anchor investors, including mutual funds, insurance companies, banks and foreign institutional investors (FIIs) ahead of the opening of IPO. The issue of shares to anchor investors was priced at Rs 710 per share -- the top end of the Rs 705-710 per share price band for the IPO.
L&T Infotech, part of the L&T group, offers an extensive range of IT services to clients in diverse industries such as banking and financial services, insurance, energy and process, consumer packaged goods, retail and pharmaceuticals, media and entertainment, hi-tech and consumer electronics and automotive and aerospace. New and emerging technologies accounted for 11.1% of the company's revenue from continuing operations in the year ended 31 March 2016 (FY 2016). L&T Infotech plans to invest seed capital in startups to gain from innovation capabilities and digital offerings of startups. L&T Infotech is dependent on North America and Europe regions for most of its business. The North America region contributed 69% of the company's revenue in FY 2016. The contribution from Europe to total revenue was 17.4% in FY 2016.
Based on consolidated financial performance, the company's net profit rose 19.89% to Rs 922.17 crore on 17.45% growth in revenue from operations to Rs 5847.06 crore in the year ended 31 March 2016 over the year ended 31 March 2015. The company has no formal dividend distribution policy.
L&T's consolidated net profit rose 18.6% to Rs 2453.64 crore on 18.51% rise in net sales to Rs 32812.24 crore in Q4 March 2016 over Q4 March 2015.
L&T is a major Indian multinational engaged in technology, engineering, construction, manufacturing and financial services. It operates in more than 30 countries worldwide.
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