Shares of L&T Infotech, the sixth largest Indian IT services player, made a tepid debut at the bourses today and ended nearly 2 per cent lower from its issue price of Rs 710.
After listing at Rs 666.60, down 6.11 per cent over the issue price on BSE, the stock ended at Rs 697.65, reflecting a loss of 1.73 per cent. During the day, it tumbled 6.19 per cent to Rs 666.
At NSE, shares of the company settled 1.74 per cent lower at Rs 697.60 after listing at Rs 667.
The company's market valuation stands at Rs 11,849.13 crore.
On the volume front, 22.42 lakh shares of the company were traded on BSE and over one crore shares changed hands at NSE during the day.
Shares of Larsen & Toubro also ended 0.96 per cent down at Rs 1,556.25 on BSE.
This is the first issue in nearly four months to list at a discount. Prior to this, HealthCare Global had made a weak debut in March.
L&T Infotech's lacklustre debut is also in sharp contrast to smart listing gains seen in the shares of Quess Corp and Mahanagar Gas earlier this month.
Market analysts said that the recent set of disappointing earnings by IT companies may have played spoilsport.
The firm's IPO, which was oversubscribed nearly 12 times, had attracted more than one million applications, the highest for any share sale offer in at least five years.
From 2011 till date, L&T Infotech is the first one to attract million applications.
L&T Infotech had fixed a price band of Rs 705-710 per share for the offering.
Kotak Mahindra Capital Company, Citigroup Global Markets India and ICICI Securities were the managers of the issue.
In the financial year 2015-16, L&T Infotech's revenue from operations and other income stood at Rs 6,143.02 crore, while it clocked a profit after tax of Rs 922.17 crore during the same period.
L&T Infotech is the sixth largest Indian IT services player with a revenue of USD 887 million and an employee base of over 20,000.
The company, part of the diversified Larsen & Toubro group, has joined the list of about a dozen other companies that have come out with their IPOs so far this year.
Meanwhile, the Sensex ended the day with a loss of 205.37 points at 27,710.52.
