The qualified institutional buyers category was subscribed 19.91 times in the IPO.
The qualified institutional buyers (QIBs) category in IT outsourcing services provider Larsen & Toubro Infotech (L&T Infotech)'s initial public offer (IPO) was subscribed 19.91 times after its IPO received strong response from the investors. QIB category got bids for a whopping 6.96 crore shares compared with 35 lakh shares reserved for that category in the IPO. Non institutional investors category was subscribed 10.76 times and retail individual investors (RIIs) category was subscribed 7.39 times.
As a whole, 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. L&T Infotech's IPO opened for bidding on 11 July 2016 and closed on 13 July 2016. The price band of the IPO was fixed at Rs 705-710 per share.
The company's promoter and engineering & construction major L&T sold a part of its stake through the IPO of L&T Infotech. L&T Infotech will not get any funds from the IPO and the entire sale proceeds will go to parent L&T. L&T sold 1.75 crore shares of L&T Infotech through the IPO. Retail investors will get a discount of Rs 10 per share on the final price discovered through the book building route.
The company raised Rs 372.75 crore from selling 52.5 lakh shares to a slew of anchor investors, including mutual funds, insurance companies, banks and foreign institutional investors (FIIs). The issue of shares to anchor investors was priced at Rs 710 per share -- the top end of the Rs 705-710 per share price band for the IPO.
L&T Infotech, part of the L&T group, offers an extensive range of IT services to clients in diverse industries such as banking and financial services, insurance, energy and process, consumer packaged goods, retail and pharmaceuticals, media and entertainment, hi-tech and consumer electronics and automotive and aerospace. New and emerging technologies accounted for 11.1% of the company's revenue from continuing operations in the year ended 31 March 2016 (FY 2016). L&T Infotech plans to invest seed capital in startups to gain from innovation capabilities and digital offerings of startups. L&T Infotech is dependent on North America and Europe regions for most of its business. The North America region contributed 69% of the company's revenue in FY 2016. The contribution from Europe to total revenue was 17.4% in FY 2016.
Based on consolidated financial performance, the company's net profit rose 19.89% to Rs 922.17 crore on 17.45% growth in revenue from operations to Rs 5847.06 crore in the year ended 31 March 2016 over the year ended 31 March 2015. The company has no formal dividend distribution policy.
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