L&T Tech Services mops up Rs 268 cr via anchor investors

L&T Technology Services today raised over Rs 268 crore from anchor investors by selling shares at a price of Rs 860 ahead of its initial share sale next week.
As many as 19 anchor investors, including DSP BlackRock, JP Morgan, ICICI Prudential Life Insurance and Morgan Stanley, have been allotted shares by the company.
L&T Technology Services, an arm of engineering giant Larsen and Toubro (L&T), will hit the capital markets on September 12 to raise an estimated Rs 900 crore.
This will be the second company from the L&T Group to hit the market with an IPO since July when L&T Infotech had launched a public offer. The flagship Larsen and Toubro is already listed.

"Under the anchor investor portion in the public issue of L&T Technology Services, 31,20,000 shares have been subscribed today by 19 anchor investors at Rs 860 per equity share," the company said.
The public issue comprises an offer for sale of up to 10,400,000 shares by its promoter L&T.

According to sources, the IPO size is estimated to be Rs 900 crore and will give L&T Technology Services a valuation of about Rs 8,700 crore. The IPO will account for about 10.2 per cent of the company's post-offer paid-up capital.
The price band is expected to be Rs 850-860 per share.

The company, which had filed draft red herring prospectus (DRHP) with Sebi in July, got green light from the market regulator on August 24.
The firm, which provides innovative engineering as well as research and development services across sectors, has revenues worth nearly USD 500 million.
L&T Technology Services also offers engineering analytics, Internet of Things and automation solutions.
The erstwhile L&T Integrated Engineering Services, carved out of parent L&T in 2010, was renamed as L&T Technology Services in 2012. Later, certain businesses of L&T Infotech, including telecom and high-technology product engineering services businesses, were transferred to L&T Technology Services.

Kotak Mahindra Capital Company, DSP Merrill Lynch, JM Financial Institutional Securities and SBI Capital Markets are the merchant bankers to the issue.
The shares are proposed to be listed on BSE and NSE.
In July, the initial share sale of L&T Infotech was oversubscribed nearly 12 times with the number of applications crossing 1 million. It raised over Rs 1,200 crore.