Shares of L&T Technology Services were trading at Rs 899.30 at 11:10 IST on BSE, at a premium of 4.56% over the initial public offer price of Rs 860 per share on its debut on the bourses today, 23 September 2016.
Meanwhile, the BSE Sensex was down 13.45 points, or 0.05%, to 28,759.68.
L&T Technology Services made its debut on the bourses at Rs 900, a premium of 4.65% over the offer price of Rs 860. On BSE, so far 10.63 lakh shares were traded in the counter. The stock hit a high of Rs 931 and low of Rs 886.95 so far during the day.
The initial public offer (IPO) of L&T Technology Services received bids for 1.83 crore shares and the IPO was subscribed 2.53 times. The IPO of L&T Technology Services was opened on 12 September 2016 and closed on 15 September 2016.
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's stake in L&T Technology Services has fallen to 89.77% from 100% earlier after the L&T Technology's 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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