L&T gains on plan to sell 15% stake in L&T Technology Services via IPO

L&T rose 1.39% to Rs 1,585.55 at 14:50 IST on BSE after the company said it proposes to sell 15% stake in its subsidiary, L&T Technology Services, through an initial public offer.

The announcement was made during trading hours today, 15 July 2016.

Meanwhile, the BSE Sensex was up 114.96 points, or 0.41%, to 27,827.15.

On BSE, so far 1.64 lakh shares were traded in the counter, compared with an average volume of 2.04 lakh shares in the past one quarter. The stock hit a high of Rs 1,594.95 and a low of Rs 1,558 so far during the day. The stock hit a 52-week high of Rs 1,886.25 on 17 July 2015. The stock 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 14 July 2016, rising 7.07% compared with 5.86% rise in the Sensex. The scrip had also outperformed the market in past one quarter, rising 26.57% as against Sensex's 9.03% rise.

The large-cap company has an equity capital of Rs 186.40 crore. Face value per share is Rs 2.

L&T Technology Service is a pure play global engineering, research and development services company. Prior to 1 January 2014, the business was conducted as a division of L&T and as a sub-segment business of L&T's unit, L&T Infotech.

The decision to sell 15% of stake in L&T Technology Services comes two days after L&T's subsidiary, L&T Infotech, received strong response from investors for its initial public offer (IPO) which concluded on Wednesday, 13 July 2016. IT outsourcing services provider L&T Infotech's 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. The price band of the IPO was fixed at Rs 705-710 per share.

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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