Receives bids for 1.83 crore shares
The initial public offer (IPO) of L&T Technology Services received bids for 1.83 crore shares, as per the data on the National Stock Exchange of India (NSE) website. The IPO was subscribed 2.53 times. The initial public offer (IPO) of L&T Technology Services had opened for bidding on 12 September 2016. The IPO closed yesterday, 15 September 2016.
The qualified institutional buyers (QIBs) category was subscribed 5.01 times. The non-institutional investors category was subscribed 1.03 times. The retail individual investors (RIIs) category was subscribed 1.75 times.
Ahead of the opening of IPO, L&T Technology Services had raised Rs 268.32 crore by selling 31.20 lakh shares to 19 anchor investors. The shares were allotted to the anchor investors at Rs 860 per share, the top end of the Rs 850 to Rs 860 per share price band for the IPO.
Anchor investors allotted shares of L&T Technology Services included Sundaram Mutual Fund, DSP Blackrock Focus 25 Fund, FIL Investments (Mauritius), BlackRock India Equities (Mauritius), Parvest Equity World Emerging, JP Morgan Funds, HDFC Trustee Company, ICICI Prudential Life Insurance Company and Sundaram Mutual Funds among others.
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The price band for the IPO was fixed at Rs 850-860 per share. The IPO comprised of an offer for sale of 1.04 crore shares by engineering and construction major L&T. L&T Technology Services will not receive any funds from the IPO. L&T currently owns 100% stake in L&T Technology Services. Its holding will fall to 89.77% after the IPO.
L&T Technology Services provides Engineering, Research and Development (ER&D) services to manufacturing, technology and process engineering companies, to help them develop and build products, processes and infrastructure required to deliver products and services to their end customers. The company operates in five industry segments viz. transportation, industrial products, telecom and hi-tech, process industry and medical devices. The company derives majority of its revenue from the US and Europe which are the two largest regions of corporate ER&D spend. North America contributed 60.4% of revenue from operations and Europe contributed 19.8% of revenue from operations for the year ended 31 March 2016 (FY 2016).
Based on consolidated financials, L&T Technology Services reported net profit of Rs 135.05 crore on revenue from operations of Rs 765.38 crore for the quarter ended 30 June 2016. The company reported net profit of Rs 434.23 crore on revenue from operations of Rs 2894.03 crore for FY 2016.
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